January 27, 2025 Meeting EUGENE CITY COUNCIL AGENDA January 27, 2025
AgendaAI Summary
The Eugene City Council held a meeting on January 27, 2025, with a primary focus on affordable housing initiatives, including the adoption of resolutions approving property tax exemptions for five low-income rental housing properties (Apple Orchard Village Apartments, Santa Clara Place, Laurel Hill Center River Road Housing, River Road Apartments, and Whiteaker Commons) and recommending resources for low-income housing. The agenda also included routine items such as election of City Council officers for 2025, approval of previous meeting minutes, acknowledgment of the city's annual financial reports for fiscal year 2024, and public comment opportunities.
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January 27, 2025 Meeting EUGENE CITY COUNCIL AGENDA January 27, 2025 7:30 p.m. CITY COUNCIL MEETING and URBAN RENEWAL AGENCY MEETING City Council meetings are held in a hybrid format using in person and virtual meeting technology. Information about online or other options for access and participation will be available at https://www.eugene-or.gov/3360/Webcasts-and-Meeting-Materials Meeting of January 27, 2025; Her Honor Mayor Kaarin Knudson Presiding Councilors Matt Keating, President Randy Groves, Vice President Mike Clark Greg Evans Eliza Kashinsky Lyndsie Leech Jennifer Yeh Alan Zelenka 7:30 p.m. CITY COUNCIL MEETING and URBAN RENEWAL AGENCY MEETING 1. ACTION: Election of City Council Officers for 2025 2. CEREMONIAL MATTERS 3. COMMITTEE REPORTS AND ITEMS OF INTEREST 4. PRIORITY GOAL ACTION: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption Renewal for Apple Orchard Village Apartments 5. PRIORITY GOAL ACTION: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption Renewal for Santa Clara Place 6. PRIORITY GOAL ACTION: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for Laurel Hill Center River Road Housing 7. PRIORITY ACTION ITEM: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for River Road Apartments -- 1 of 123 -- January 27, 2025 Meeting 8. PRIORITY GOAL ACTION: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for Whiteaker Commons 9. PRIORITY GOAL ACTION: Recommend Approval of Resources for Housing Affordable to People with Low-Incomes 10. CONSENT CALENDAR 1 A. Approval of City Council Minutes November 20, 2024 Work Session November 25, 2024 Meeting December 11, 2024 Work Session B. Approval of City Council Tentative Agenda C. Appointment to the Metropolitan Wastewater Management Commission 11. ACTION: Resolution Acknowledging Receipt of City of Eugene, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 12. ACTION: Resolution Acknowledging Receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene for the Fiscal Year Ended June 30, 2024 13. PUBLIC COMMENT The Eugene City Council welcomes your interest in these agenda items. This meeting location is wheelchair-accessible. For the hearing impaired, an interpreter can be provided with 48 hours' notice prior to the meeting. Spanish-language interpretation will also be provided with 48 hours' notice. To arrange for these services, contact the receptionist at 541-682-5010. City Council meetings are telecast live on Metro Television, Comcast channel 21, and rebroadcast later in the week. El consejo de la Ciudad de Eugene agradece su interés en estos asuntos de la agenda. El lugar de la reunión tiene acceso para sillas de ruedas. Se puede proveer a un intérprete para las personas con discapacidad auditiva si avisa con 48 horas de anticipación. También se puede proveer interpretación para español si avisa con 48 horas de anticipación. Para reservar estos servicios llame al 541-682- 5010. Las reuniones del consejo de la ciudad se transmiten en vivo por Metro Television, Canal 21 de Comcast y son retransmitidas durante la semana. For more information, contact the Council Coordinator at 541-682-5010, or visit us online at www.eugene-or.gov. -- 2 of 123 -- January 27, 2025 Meeting – Item 1 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Action: Election of City Council Officers for 2025 Meeting Date: January 27, 2025 Agenda Item Number: 1 Department: City Manager’s Office Staff Contact: Natalie Venhuda www.eugene-or.gov Contact Telephone Number: 541-682-8497 ISSUE STATEMENT This item is to elect the 2025 City Council President and Vice President. BACKGROUND Each year the City Council elects a new president and vice president. The City Charter and City Code specify the role of Council President; the City Code outlines the process of selecting the President and Vice President. Section 13 of the Charter states: “Council - President. (1) Each year, at the first regular meeting of the council, or as soon as practicable, the council shall choose by ballot one of its members to serve as council president. (2) The council president shall preside at council meetings when the mayor is absent. (3) The council president shall function as mayor, with the powers and subject to the limitations of the office of mayor when the mayor: (a) is absent from the city on leave granted by the council; (b) has been absent from the city for 30 days or more; or (c) has been physically unable to function as mayor for 30 days or more.” Further, the Section 2.009 of the City Code states: (1) The council president shall be elected for a one-year term. That person who has served the longest on the council and has not previously acted as council president shall normally be entitled to election as the president. A councilor may be re-elected as president of the council only after the expiration of one year from the date the councilor last served as such president unless two-thirds of the total membership of the council votes otherwise. A councilor will not be eligible to be elected president who has not served as a councilor for at least two years. (2) The vice-president of the council shall be elected at the same time and in the same manner as the president of the council. A vice-president may be nominated and elected as president. (3) The candidates for president and vice-president of the council shall be nominated and elected by a majority vote at the first regular meeting of the council in each calendar year.” CC Agenda Page 1 -- 3 of 123 -- January 27, 2025 Meeting – Item 1 Council Leadership History Ward Name Last Served as President Last Served as Vice President 1 Eliza Kashinsky 2 Matt Keating Current (2024) 2023 3 Alan Zelenka 2017 2016 4 Jennfier Yeh 2021 2020 5 Mike Clark 2018 2017 6 Greg Evans 2016 (interim in 2022) 2015 7 Lyndsie Leech 8 Randy Groves 2023 Current (2024) POSSIBLE MOTIONS 1. Move to elect ___________________ as President of the City Council for 2025. AND 2. Move to elect __________________ as Vice President of the City Council for 2025. FOR MORE INFORMATION Staff Contact: Natalie Venhuda, City Council Coordinator Telephone: 541-682-8497 Staff E-Mail: nvenhuda@eugene-or.gov CC Agenda Page 2 -- 4 of 123 -- January 27, 2025 Meeting – Item 2 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Ceremonial Matters Meeting Date: January 27, 2025 Agenda Item Number: 2 Department: Central Services Staff Contact: Cherish Bradshaw www.eugene-or.gov Contact Telephone Number: 541-682-8340 ISSUE STATEMENT This item is to acknowledge awards and achievements and inform the public of proclamations by the Mayor. No action is required by the City Council. BACKGROUND Per City Council Operating Agreements, at the first regular meeting of each month, the first agenda item shall be used to acknowledge special recognition or awards given to the City of Eugene or for the Mayor to read proclamations which serve to encourage and educate the community. Proclamations shall be made and placed on the agenda at the discretion of the Mayor. The following proclamation for the month of January will highlighted during the January 27 meeting: • January 20, 2025 – Martin Luther King Jr. Day • January 27, 2025 – International Holocaust Remembrance Day Current and previous proclamations are available on the City’s Proclamation webpage. ATTACHMENTS A) Martin Luther King Jr. Day Proclamation B) International Holocaust Remembrance Day Proclamation FOR MORE INFORMATION Staff Contact: Cherish Bradshaw, Assistant, Mayor and City Council Telephone: 541-682-8340 Staff E-Mail: cabradshaw@eugene-or.gov CC Agenda Page 3 -- 5 of 123 -- OFFICE OF THE MAYOR City of Eugene, Oregon PROCLAMATION WHEREAS: The Reverend Dr. Martin Luther King, Jr. led the 1955 Montgomery Bus Boycott and became the first president of the Southern Christian Leadership Conference, created to put an end to the practice of segregation in this country; and WHEREAS: Dr. King led the 1963 March on Washington where he gave us his dream of a nation where every person would be judged by the content of their character rather than the color of their skin; and WHEREAS: Dr. King was a “drum major” for peace who challenged and ultimately changed unjust laws through nonviolent civil disobedience and who was awarded the Nobel Peace Prize; and WHEREAS: Dr. King became the co-chair of Clergy and Laity Concerned about Vietnam in 1967 after his famous speech in opposition to the war; and WHEREAS: Dr. King initiated the Poor People’s Campaign in 1968 to demand economic and human rights for all poor Americans regardless of race and it was during this campaign, working in support of sanitation workers of Memphis, Tennessee, that Dr. King was assassinated on April 4, 1968; and WHEREAS: In light of his selfless service and sacrifice that made this a better nation for all people, the third Monday of January has been observed as a federal holiday since 1986. NOW, THEREFORE, I, Kaarin Knudson, Mayor of the City of Eugene, Oregon, do hereby proclaim January 20, 2025, to be “Martin Luther King Jr. Day” in the city of Eugene to honor a person of such outstanding leadership who used persuasion, love and non-violent resistance to make this a more just nation. _________________ Mayor Kaarin Knudson City of Eugene January 20, 2025 Attachment A January 27, 2025 Meeting – Item 2 CC Agenda Page 4 -- 6 of 123 -- OFFICE OF THE MAYOR City of Eugene, Oregon PROCLAMATION WHEREAS: The United Nations (UN) General Assembly passed a resolution in November 2005 to designate the 27th of January as the International Day of Commemoration in memory of the victims of the Holocaust; and WHEREAS: Since 2005, the UN and its member states have held commemoration ceremonies to mark the anniversary of the liberation of the Auschwitz-Birkenau camp and to honor the victims and survivors of the Holocaust; and WHEREAS: This year on International Holocaust Remembrance Day, the City of Eugene commemorates the 80th Anniversary of the liberation of Auschwitz-Birkenau; and WHEREAS: The purpose of International Holocaust Remembrance Day is to serve as a date of the official commemoration of the victims of the Nazi regime, and to promote Holocaust education throughout the world; and WHEREAS: The City of Eugene City Council has passed Resolution No. 5190 in 2017 declaring the City of Eugene’s opposition to anti-Semitic hate and bias crimes; and WHEREAS: The City of Eugene joins its Jewish community to honor International Holocaust Remembrance Day and encourages all community members to reflect on this day of remembrance. NOW, THEREFORE, I, Kaarin Knudson, Mayor of the City of Eugene, Oregon, do hereby proclaim January 27, 2025, to be “International Holocaust Remembrance Day” in Eugene, Oregon, and encourage all community members to join in this special observance, to honor the victims and survivors of the Holocaust worldwide. _________________ Mayor Kaarin Knudson City of Eugene January 27, 2025 Attachment B January 27, 2025 Meeting – Item 2 CC Agenda Page 5 -- 7 of 123 -- January 27, 2025 Meeting – Item 4 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Goal Action: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption Renewal for Apple Orchard Village Apartments Meeting Date: January 27, 2025 Agenda Item Number: 4 Department: Planning and Development Staff Contact: Laura Hammond www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT City Council is asked to adopt a resolution to renew a 20-year Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for Apple Orchard Village Apartments, an existing Affordable Housing development located at 2670 Edgewood Drive. Apple Orchard Village Limited Partnership by Cornerstone Community Housing is the applicant and the property owner of record. The development includes 40 low-income rental housing units and common areas. BACKGROUND Council adopted the LIRHPTE program in 1990. Since the adoption of the program, Council has approved tax exemptions for 40 affordable housing developments with more than 1,900 units. Council unanimously approved extending the LIRHPTE program for an additional ten years in 2020. The ordinance also enables recipients to apply for renewal of the 20-year LIRHPTE when a prior LIRPHTE period has expired. Council has approved LIRHPTE renewals for more than 400 units. Council reviews and takes action on each LIRHPTE request. Last year, City Council approved three LIRHPTE applications, for the provision and preservation of 285 units of housing affordable to people with low incomes in Eugene. Developments must meet criteria including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income (AMI). If an application meets the substantive criteria at Eugene Code (EC) 2.939(4) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; Council would need to adopt a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The requested tax exemption renewal is for Apple Orchard Village Apartments, an Affordable Housing development located at 2670 Edgewood Drive (see map in Attachment D). The development includes 40 low-income rental housing units (8 studio, 8 one-bedroom, and 24 two- bedroom units) and common areas. In 2004, Council granted a LIRHPTE to Apple Orchard Village Limited Partnership, Metropolitan CC Agenda Page 6 -- 8 of 123 -- January 27, 2025 Meeting – Item 4 Affordable Housing Corp dba Cornerstone Community Housing for the Apple Orchard Village Apartments development. The property has provided low-income rental housing since construction was completed in 2005. Renewal of the LIRHPTE would allow the property to continue to offer low-income rental housing for the next 20 years. The units currently have rents ranging from $556 and $1,108 for one-, two-, and three-bedroom units, affordable to households at or below 40 percent and 60 percent AMI. Without the tax exemption, property expenses would increase significantly, reducing resources for maintenance and resident services. The property would not be able to maintain the same high standards of quality, safe, Affordable Housing without the continued property tax exemption. The requested exemption meets the substantive criteria at EC 2.939(4) as shown in the Report and Recommendation provided in Attachment A. No public comments were received during the public comment period. RELATED CITY POLICIES Housing Implementation Pipeline (HIP): The HIP lists the LIRHPTE program as an important tool for supporting housing that serves the public good. Approving Apple Orchard Village Apartments for a LIRHPTE helps preserve existing affordable units furthering the HIP's 5-year goals of increasing and maintaining the number of Affordable Housing units available to the community. City of Eugene Strategic Plan 2023-2026: Renewing the Apple Orchard Village Apartments LIRHPTE aligns with the City’s strategic plan: Urgent Community Needs - Stabilize the cost of housing. PREVIOUS COUNCIL DIRECTION May 26, 2020, Meeting Councilor Semple, seconded by Councilor Yeh, moved to adopt an Ordinance Concerning Low- Income Rental Housing Property Tax Exemptions and Amending Sections 2.938, 2.939 and 2.940 of the Eugene Code, 1971; and Resolution Adopting Amended Standards and Guidelines for Processing Applications for Low-Income Rental Housing Property Tax Exemptions and Repealing Resolution No. 5028. Passed 8:0 COUNCIL OPTIONS 1. Approve the tax exemption. 2. Deny the tax exemption. CITY MANAGER’S RECOMMENDATION Adopt the Resolution included in Attachment B to renew approval for a Low-Income Rental Housing Property Tax Exemption for Apple Orchard Village Apartments. CC Agenda Page 7 -- 9 of 123 -- January 27, 2025 Meeting – Item 4 SUGGESTED MOTION Move to adopt the resolution attached as Attachment B to this AIS, approving a low-income rental housing property tax exemption for property located on Edgewood Drive in Eugene. ATTACHMENTS A. Report and Recommendation B. Resolution Approving the Tax Exemption C. Resolution Denying the Tax Exemption D. Map of the proposed site FOR MORE INFORMATION Staff Contact: Telephone: Staff E-Mail: Laura Hammond, Housing Tools Analyst 541-682-5502 LHammond@eugene-or.gov CC Agenda Page 8 -- 10 of 123 -- Apple Orchard Village Apartments Report and Recommendation - Page 1 of 2 REPORT AND RECOMMENDATION of the Community Development Manager of the Planning and Development Department Application of Apple Orchard Village Limited Partnership For Low-Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 2670 Edgewood Drive, Eugene, OR 97404 APPLE ORCHARD VILLAGE APARTMENTS The Community Development Manager of the Planning and Development Department of the City of Eugene finds that: 1. On behalf of Apple Orchard Village Limited Partnership, Metropolitan Affordable Housing Corp dba Cornerstone Community Housing (Cornerstone or the applicant) has submitted an application for a property tax exemption for the real property known as Apple Orchard Village Apartments and located at 2670 Edgewood Drive, Eugene, Oregon, 97404 ( 17-04- 12-33 Tax Lot 00603; 1735644). Apple Orchard Village Limited Partnership is the owner of the property that is the subject of the application. Cornerstone is a general partner of Apple Orchard Village Limited Partnership. The other general partner is Apple Orchard Apartments, LLC, of which is Cornerstone is the managing member. The applicant has a business location of 1175 Charnelton Street, Eugene, OR 97401. The applicant has submitted an application for an exemption from ad valorem taxes through the City's Low- Income Rental Housing Property Tax Exemption (LIRHPTE) program (Sections 2.937 to 2.940 of the Eugene Code, 1971) for 40 low-income rental housing units (8 studio, 8 one-bedroom, and 24 two bedroom) and common areas. 2. The Apple Orchard Village Apartments housing development first received a Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for the property in 2005. The residential units have housed low-income households since that time. Under EC 2.940(6), in the final year of low-income housing tax exemptions, applications for subsequent low-income housing tax exemptions for the property may be submitted. 3. I have reviewed the application and find that the applicant has submitted all required materials and complies with the provisions of EC 2.939(4) and Sections 2.5 through 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. Specifically, I find: (a) The property, or portion thereof subject to the property tax exemption, will be occupied solely as a residence for low-income persons. (b) (c) The property is owned by a Limited Partnership in which Cornerstone, a nonprofit corporation organized in a manner that meets the criteria for a public benefit corporation as described under ORS 65.001(38), is a general partner, and Cornerstone is responsible for the day-to-day operation of the property. (d) The property is owned by a Limited Partnership in which Cornerstone, a nonprofit corporation that expends no more than ten percent of its annual income from residential rentals for purposes other than acquisition, Attachment A January 27, 2025 Meeting – Item 4 CC Agenda Page 9 -- 11 of 123 -- Apple Orchard Village Apartments Report and Recommendation - Page 2 of 2 maintenance or repair of residential rental property for low-income persons, or for the provision of on-site child care services for the residents of the rental property, is a general partner. (e) The applicant has complied with the policies set forth in Section 5 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No. 5297 (Standards and Guidelines). (1) The applicant has signed a Rent Regulatory Agreement as described in Section 5.1 of the Standards and Guidelines and said agreement will be in effect for the duration of the tax exemption period. (2) As described in Section 5.2 of the Standards and Guidelines, the applicant 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 to insure that the premises are maintained in decent, safe and sanitary conditions for the occupants. (f) The development is consistent with the city's Housing Dispersal Policy. (g) The development does not cause the displacement of low-income persons. (h) The development does not cause destruction of historic properties. (i) The development is otherwise consistent with the Eugene Code and adopted city regulations and policies. 4. Comments have been solicited from interested City departments, 4J School District, and the affected neighborhood group. No public comments were received. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Envision Eugene Comprehensive Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this ____ day of __________________, 2025. Print: Will Dowdy Sign: Community Development Manager of the Planning and Development Department Attachment A January 27, 2025 Meeting – Item 4 CC Agenda Page 10 -- 12 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON EDGEWOOD DRIVE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04- 12-33, TAX LOT 00603; ASSESSOR’S PROPERTY ACCOUNT NO. 1735644) (APPLICANT METROPOLITAN AFFORDABLE HOUSING CORPORATION DBA CORNERSTONE COMMUNITY HOUSING) The City Council of the City of Eugene finds that: A. Apple Orchard Village LTD Partnership (1175 Charnelton Street, Eugene, Oregon, 97401) is the owner of real property located on Edgewood Drive in Eugene, Oregon (Assessor’s Map 17-04-12-33, Tax Lot 00603; Assessor’s Property Account No. 1735644), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Metropolitan Affordable Housing Corporation dba Cornerstone Community Housing (277 West 8th Avenue, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The tax exemption being sought includes eight studio units, eight one-bedroom units, and 24 two-bedroom units, for a total of 40 low-income units. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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, the City Council approves the application of Metropolitan Affordable Housing Corporation dba Cornerstone Community Housing for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-12-33, Tax Lot 00603; Assessor’s Property Account No. 1735644; and more particularly described in Exhibit A attached to this Attachment B January 27, 2025 Meeting – Item 4 CC Agenda Page 11 -- 13 of 123 -- Resolution - Page 2 of 2 Resolution, which includes eight studio units, eight one-bedroom units, and 24 two-bedroom, for a total of 40 low-income units. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2025, and continuing for a continuous period of 20 years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after and 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 July 1, 2030, and no extensions or exceptions were granted; or 2.2 The applicant fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 5297, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing units, 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 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, 2025. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment B January 27, 2025 Meeting – Item 4 CC Agenda Page 12 -- 14 of 123 -- Exhibit A Legal Description Attachment B January 27, 2025 Meeting – Item 4 CC Agenda Page 13 -- 15 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON EDGEWOOD DRIVE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04- 12-33, TAX LOT 00603; ASSESSOR’S PROPERTY ACCOUNT NO. 1735644) (APPLICANT METROPOLITAN AFFORDABLE HOUSING CORPORATION DBA CORNERSTONE COMMUNITY HOUSING) The City Council of the City of Eugene finds that: A. Apple Orchard Village LTD Partnership (1175 Charnelton Street, Eugene, Oregon, 97401) is the owner of real property located on Edgewood Drive in Eugene, Oregon (Assessor’s Map 17-04-12-33, Tax Lot 00603; Assessor’s Property Account No. 1735644), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Metropolitan Affordable Housing Corporation dba Cornerstone Community Housing (277 West 8th Avenue, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The tax exemption being sought includes eight studio units, eight one-bedroom units, and 24 two-bedroom units, for a total of 40 low-income units. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of Metropolitan Affordable Housing Corporation dba Cornerstone Community Housing for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-12-33, Tax Lot 00603; Assessor’s Property Account No. Attachment C January 27, 2025 Meeting – Item 4 CC Agenda Page 14 -- 16 of 123 -- Resolution - Page 2 of 2 1735644; and more particularly described in Exhibit A attached to this Resolution, which includes eight studio units, eight one-bedroom units, and 24 two-bedroom, for a total of 40 low- income units because the applicant has failed to demonstrate satisfactory compliance with the criteria in Section 2.939(4) of the Eugene Code, 1971. Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten 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 is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment C January 27, 2025 Meeting – Item 4 CC Agenda Page 15 -- 17 of 123 -- Exhibit A Legal Description Attachment C January 27, 2025 Meeting – Item 4 CC Agenda Page 16 -- 18 of 123 -- Attachment D January 27, 2025 Meeting – Item 4 CC Agenda Page 17 -- 19 of 123 -- January 27, 2025 Meeting – Item 5 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Goal Action: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption Renewal for Santa Clara Place Meeting Date: January 27, 2025 Agenda Item Number: 5 Department: Planning and Development Staff Contact: Laura Hammond www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT City Council is asked to adopt a resolution to renew a 20-year Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for Santa Clara Place, an existing Affordable Housing development located at 120-194 Santa Clara Avenue. Santa Clara Limited Partnership by St. Vincent de Paul of Lane County is the applicant and the property owner of record. The development includes 59 low-income rental housing units, a manager unit, and common areas. BACKGROUND Council adopted the LIRHPTE program in 1990. Since the adoption of the program, Council has approved tax exemptions for 40 affordable housing developments with more than 1,900 units. Council unanimously approved extending the LIRHPTE program for an additional ten years in 2020. The ordinance also enables recipients to apply for renewal of the 20-year LIRHPTE when a prior LIRPHTE period has expired. Council has approved LIRHPTE renewals for more than 400 units. Council reviews and takes action on each LIRHPTE request. Last year, City Council approved three LIRHPTE applications, for the provision and preservation of 285 units of housing affordable to people with low incomes in Eugene. Developments must meet criteria including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income (AMI). If an application meets the substantive criteria at Eugene Code (EC) 2.939(4) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; Council would need to adopt a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The requested tax exemption renewal is for Santa Clara Place, an Affordable Housing development located at 120-194 Santa Clara Avenue (see map in Attachment D). The development includes 59 low-income rental housing units (18 one-bedroom, 22 two-bedroom, 19 three-bedroom units) a manager’s unit, and common areas. In 2004, Council granted a LIRHPTE to St. Vincent de Paul Society of Lane County for the Santa CC Agenda Page 18 -- 20 of 123 -- January 27, 2025 Meeting – Item 5 Clara Place development. The property has provided low-income rental housing since construction was completed in 2005. Renewal of the LIRHPTE would allow the property to continue to offer low-income rental housing for the next 20 years. The units currently have rents ranging from $437 to $907 for one-, two-, and three-bedroom units, affordable to households at or below 40 percent and 50 percent AMI. Without the tax exemption renewal, property expenses would increase significantly, reducing resources for maintenance and resident services. The property would not be able to maintain the same high standards of quality, safe, Affordable Housing without the continued property tax exemption. The requested exemption meets the substantive criteria at EC 2.939(4) as shown in the Report and Recommendation provided in Attachment A. No public comments were received during the public comment period. RELATED CITY POLICIES Housing Implementation Pipeline (HIP): The HIP lists the LIRHPTE program as an important tool for supporting housing that serves the public good. Approving Santa Clara Place for a LIRHPTE helps preserve existing affordable units furthering the HIP's 5-year goals of increasing and maintaining the number of Affordable Housing units available to the community. City of Eugene Strategic Plan 2023-2026: Approving the LIRHPTE renewal aligns with the City’s strategic plan: Urgent Community Needs -Stabilize the cost of housing. PREVIOUS COUNCIL DIRECTION May 26, 2020, Meeting Councilor Semple, seconded by Councilor Yeh, moved to adopt an Ordinance Concerning Low- Income Rental Housing Property Tax Exemptions and Amending Sections 2.938, 2.939 and 2.940 of the Eugene Code, 1971; and Resolution Adopting Amended Standards and Guidelines for Processing Applications for Low-Income Rental Housing Property Tax Exemptions and Repealing Resolution No. 5028. Passed 8:0 COUNCIL OPTIONS 1. Approve the tax exemption. 2. Deny the tax exemption. CITY MANAGER’S RECOMMENDATION Adopt the Resolution included in Attachment B to renew approval for a Low-Income Rental Housing Property Tax Exemption for Santa Clara Place. CC Agenda Page 19 -- 21 of 123 -- January 27, 2025 Meeting – Item 5 SUGGESTED MOTION Move to adopt the resolution attached as Attachment B to this AIS, approving a low-income rental housing property tax exemption for property located on Santa Clara Avenue in Eugene. ATTACHMENTS A. Report and Recommendation B. Resolution Approving the Tax Exemption C. Resolution Denying the Tax Exemption D. Map of the proposed site FOR MORE INFORMATION Staff Contact: Laura Hammond, Housing Tools Analyst Telephone: 541-682-5502 Staff E-Mail: LHammond@eugene-or.gov CC Agenda Page 20 -- 22 of 123 -- Santa Clara Place Report and Recommendation - Page 1 of 2 REPORT AND RECOMMENDATION of the Community Development Manager of the Planning and Development Department Application of Santa Clara Limited Partnership For Low-Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 120-194 Santa Clara Ave, Eugene, OR 97404 SANTA CLARA PLACE The Community Development Manager of the Planning and Development Department of the City of Eugene finds that: 1. On behalf of Santa Clara Limited Partnership, St. Vincent de Paul Society of Lane County, Inc. (St. Vincent or the applicant) has submitted an application for a property tax exemption for the real property known as Santa Clara Place and located at 120-194 Santa Clara Ave, Eugene, Oregon, 97404 ( 17-04-11-43 Tax Lot 00801; Account No. 1651056). Santa Clara Limited Partnership is the owner of the property that is the subject of the application. St. Vincent is the general partner of Santa Clara Limited Partnership. The applicant has a business location of 2890 Chad Drive, Eugene, OR 97408. The applicant has submitted an application for an exemption from ad valorem taxes through the City's Low-Income Rental Housing Property Tax Exemption (LIRHPTE) program (Sections 2.937 to 2.940 of the Eugene Code, 1971) for 59 low-income rental housing units (18 one-bedroom, 22 two bedroom, 19 three bedroom) and common areas. 2. The Santa Clara Place housing development first received a Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for the property in 2005. The residential units have housed low-income households since that time. Under EC 2.940(6), in the final year of low-income housing tax exemptions, applications for subsequent low-income housing tax exemptions for the property may be submitted. 3. I have reviewed the application and find that the applicant has submitted all required materials and complies with the provisions of EC 2.939(4) and Sections 2.5 through 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. Specifically, I find: (a) The property, or portion thereof subject to the property tax exemption, will be occupied solely as a residence for low-income persons. (b) (c) The property is owned by a Limited Partnership in which St. Vincent, a nonprofit corporation organized in a manner that meets the criteria for a public benefit corporation as described under ORS 65.001(38) is a general partner, and St. Vincent is responsible for the day-to-day operation of the property. (d) The property is owned by a Limited Partnership in which St. Vincent, a nonprofit that expends no more than ten percent of its annual income from residential rentals for purposes other than acquisition, maintenance or repair of residential rental property for low-income persons, or for the provision of on-site child care services for the residents of the rental property, is a general partner. Attachment A January 27, 2025 Meeting – Item 5 CC Agenda Page 21 -- 23 of 123 -- Santa Clara Place Report and Recommendation - Page 2 of 2 (e) The applicant has complied with the policies set forth in Section 5 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No. 5297 (Standards and Guidelines). (1) The applicant has signed a Rent Regulatory Agreement as described in Section 5.1 of the Standards and Guidelines and said agreement will be in effect for the duration of the tax exemption period. (2) As described in Section 5.2 of the Standards and Guidelines, the applicant 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 to insure that the premises are maintained in decent, safe and sanitary conditions for the occupants. (f) The development is consistent with the city's Housing Dispersal Policy. (g) The development does not cause the displacement of low-income persons. (h) The development does not cause destruction of historic properties. (i) The development is otherwise consistent with the Eugene Code and adopted city regulations and policies. 4. Comments have been solicited from interested City departments, 4J School District, and the affected neighborhood group. No public comments were received. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Envision Eugene Comprehensive Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this ____ day of __________________, 2025. Print: Will Dowdy Sign: Community Development Manager of the Planning and Development Department Attachment A January 27, 2025 Meeting – Item 5 CC Agenda Page 22 -- 24 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON SANTA CLARA AVENUE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-11- 43, TAX LOT 00801; ASSESSOR’S PROPERTY ACCOUNT NO. 1651056) (APPLICANT ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) The City Council of the City of Eugene finds that: A. Santa Clara Limited Partnership (705 South Seneca Road, Eugene, Oregon, 97402) is the owner of real property located on Santa Clara Avenue in Eugene, Oregon (Assessor’s Map 17-04-11-43, Tax Lot 00801; Assessor’s Property Account No. 1651056), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. St. Vincent de Paul Society of Lane County, Inc. (705 South Seneca Road, Eugene, Oregon, 97402) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940.) C. The tax exemption being sought includes 19 one-bedroom units, 22 two-bedroom units, and 19 three-bedroom units, for a total of 60 low-income units, and one community room. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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, the City Council approves the application of St. Vincent de Paul Society of Lane County, Inc. for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-11-43, Tax Lot 00801; Assessor’s Property Account No. 1651056; and more particularly described in Exhibit A attached to this Resolution, which includes 19 one- Attachment B January 27, 2025 Meeting – Item 5 CC Agenda Page 23 -- 25 of 123 -- Resolution - Page 2 of 2 bedroom units, 22 two-bedroom units, and 19 three-bedroom units, for a total of 60 low-income units, and one community room. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2025, and continuing for a continuous period of 20 years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after and 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 July 1, 2030, and no extensions or exceptions were granted; or 2.2 The applicant fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 5297, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing units, 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 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, 2025. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment B January 27, 2025 Meeting – Item 5 CC Agenda Page 24 -- 26 of 123 -- f EXHIBIT A Legal Description LEGAL DESCRIPTION Parcel 2, EXCEPT the East 249.75 feet, when measured para I I e I w I th . the East line thereof, of Land Partition Plat No. 99-P1253, as recorded in Lane County Oregon Partition Plat Records, Lane County, Oregon. Attachment B January 27, 2025 Meeting – Item 5 CC Agenda Page 25 -- 27 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON SANTA CLARA AVENUE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-11- 43, TAX LOT 00801; ASSESSOR’S PROPERTY ACCOUNT NO. 1651056) (APPLICANT ST. VINCENT DE PAUL SOCIETY OF LANE COUNTY, INC.) The City Council of the City of Eugene finds that: A. Santa Clara Limited Partnership (705 South Seneca Road, Eugene, Oregon, 97402) is the owner of real property located on Santa Clara Avenue in Eugene, Oregon (Assessor’s Map 17-04-11-43, Tax Lot 00801; Assessor’s Property Account No. 1651056), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. St. Vincent de Paul Society of Lane County, Inc. (705 South Seneca Road, Eugene, Oregon, 97402) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940.) C. The tax exemption being sought includes 19 one-bedroom units, 22 two-bedroom units, and 19 three-bedroom units, for a total of 60 low-income units, and one community room. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of St. Vincent de Paul Society of Lane County, Inc. for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-11-43, Tax Lot 00801; Assessor’s Property Account No. 1651056; and more particularly described in Exhibit A attached to this Resolution, which includes 19 one-bedroom units, 22 Attachment C January 27, 2025 Meeting – Item 5 CC Agenda Page 26 -- 28 of 123 -- Resolution - Page 2 of 2 two-bedroom units, and 19 three-bedroom units, for a total of 60 low-income units, and one community room because the applicant has failed to demonstrate satisfactory compliance with the criteria in Section 2.939(4) of the Eugene Code, 1971. Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten 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 is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment C January 27, 2025 Meeting – Item 5 CC Agenda Page 27 -- 29 of 123 -- f EXHIBIT A Legal Description LEGAL DESCRIPTION Parcel 2, EXCEPT the East 249.75 feet, when measured para I I e I w I th . the East line thereof, of Land Partition Plat No. 99-P1253, as recorded in Lane County Oregon Partition Plat Records, Lane County, Oregon. Attachment C January 27, 2025 Meeting – Item 5 CC Agenda Page 28 -- 30 of 123 -- Attachment D January 27, 2025 Meeting – Item 5 CC Agenda Page 29 -- 31 of 123 -- January 27, 2025 Meeting – Item 6 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Goal Action: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for Laurel Hill Center River Road Housing Meeting Date: January 27, 2025 Agenda Item Number: 6 Department: Planning and Development Staff Contact: Laura Hammond www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT City Council is asked to adopt a resolution approving a 20-year Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for Laurel Hill Center River Road Housing, a future Affordable Housing development site located at 2743 River Road and 45 Hunsaker Lane. Laurel Hill Center is the applicant and the property owner of record. The development will include a minimum of 35 low-income rental housing units. BACKGROUND Council adopted the LIRHPTE program in 1990. Since the adoption of the program, Council has approved tax exemptions for 40 Affordable Housing developments with more than 1,900 units. Council unanimously approved extending the LIRHPTE program for an additional ten years in 2020. The ordinance also enables recipients to apply for renewal of the 20-year LIRHPTE when a prior LIRPHTE period has expired. Council has approved LIRHPTE renewals for more than 400 units. Council reviews and takes action on each LIRHPTE request. Last year, City Council approved three LIRHPTE applications, for the provision and preservation of 285 units of housing affordable to people with low incomes in Eugene. Developments must meet criteria including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income (AMI). If an application meets the substantive criteria at Eugene Code (EC) 2.939(4) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; Council would need to adopt a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The Property for which the tax exemption is being sought is located at 2743 River Road and 45 Hunsaker Lane (see map in Attachment D) and is being held for future development of low-income housing. The applicant will develop the Property with at least 35 low-income units. At this time, the applicant plans to develop a mix of studio and one-bedroom units. As the development and financing activities progress, that mix of units may change, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 35 low-income units on the CC Agenda Page 30 -- 32 of 123 -- January 27, 2025 Meeting – Item 6 Property. If the total number of units falls below the minimum of 35, the development will be required to submit a new LIRHPTE application for review and approval by the City Council. The proposed River Road Housing development by Laurel Hill Center will be located on a 1.24- acre property that combines two parcels to create flag lot off Hunsaker to the residential development. It will include residential buildings (current estimate of four) and a community building. The developer is currently assembling the financing for the project including applying for City of Eugene HOME American Rescue Plan funding. If financing is completed by 2026, construction is anticipated to begin in 2027. The developer will offer rents between $468 and $501 per unit for studio and one-bedroom units, affordable to households at or below 30 percent and 50 percent AMI. The development plans to serve residents with disabilities related to mental health, behavioral health and substance abuse disorders, including those who are unhoused and at risk of becoming unhoused. Resident services will be provided by Laurel Hill Center and partner agencies. Without the tax exemption, expenses at the property would increase resulting in fewer resources for resident services and higher rents. Approval of the LIRHPTE application will allow developer to offer the units at rates affordable to households at and below 30 percent and 50 percent AMI and provide on-going resident services. The requested exemption meets the substantive criteria at EC 2.939(4) as shown in the Report and Recommendation provided in Attachment A. No public comments were received during the public comment period. RELATED CITY POLICIES Housing Implementation Pipeline (HIP): The HIP lists the LIRHPTE program as an important tool for supporting housing that serves the public good. Approving Laurel Hill Center River Road Housing for a LIRHPTE helps preserve existing affordable units furthering the HIP's 5-year goals of increasing and maintaining the number of Affordable Housing units available to the community. City of Eugene Strategic Plan 2023-2026: Approval of the LIRHPTE for this project aligns with the City’s strategic plan: Urgent Community Needs - Stabilize the cost of housing. PREVIOUS COUNCIL DIRECTION May 26, 2020, Meeting Councilor Semple, seconded by Councilor Yeh, moved to adopt an Ordinance Concerning Low- Income Rental Housing Property Tax Exemptions and Amending Sections 2.938, 2.939 and 2.940 of the Eugene Code, 1971; and Resolution Adopting Amended Standards and Guidelines for Processing Applications for Low-Income Rental Housing Property Tax Exemptions and Repealing Resolution No. 5028. Passed 8:0 CC Agenda Page 31 -- 33 of 123 -- January 27, 2025 Meeting – Item 6 COUNCIL OPTIONS 1. Approve the tax exemption. 2. Deny the tax exemption. CITY MANAGER’S RECOMMENDATION Adopt the Resolution included in Attachment B approving a Low-Income Rental Housing Property Tax Exemption for Laurel Hill Center River Road Housing. SUGGESTED MOTION Move to adopt the resolution attached as Attachment B to this AIS, approving a low-income rental housing property tax exemption for property located on Hunsaker Lane in Eugene. ATTACHMENTS A. Report and Recommendation B. Resolution Approving the Tax Exemption C. Resolution Denying the Tax Exemption D. Map of the proposed site FOR MORE INFORMATION Staff Contact: Laura Hammond, Housing Tools Analyst Telephone: 541-682-5502 Staff E-Mail: LHammond@eugene-or.gov CC Agenda Page 32 -- 34 of 123 -- Laurel Hill Center River Road Housing Report and Recommendation - Page 1 of 2 REPORT AND RECOMMENDATION of the Community Development Manager of the Planning and Development Department Application of Laurel Hill Center For Low-Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 2743 River Road and 45 Hunsaker Lane, Eugene, OR 97404 LAUREL HILL CENTER RIVER ROAD HOUSING The Community Development Manager of the Planning and Development Department of the City of Eugene finds that: 1. Laurel Hill Center (the applicant) has submitted an application for property tax exemption for the real property known as Laurel Hill Center River Road Housing, located at 2743 River Road and 45 Hunsaker Lane, Eugene, Oregon, 97404. Laurel Hill Center is the owner of the property that is the subject of the application. The applicant has a business location of 2145 Centennial Plaza, Eugene, OR 97401. The applicant has submitted an application for an exemption from ad valorem taxes through the City's Low-Income Rental Housing Property Tax Exemption (LIRHPTE) program (Sections 2.937 to 2.940 of the Eugene Code, 1971) for at least 35 low-income units. At this time, the applicant plans to develop mix of units including studio and one-bedroom units. As the development and financing activities progress, that mix of units may change, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 35 low-income units on the Property. 2. I have reviewed the application and find that the applicant has submitted all required materials and complies with the provisions of EC 2.939(4) and Sections 2.5 through 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. Specifically, I find: (a) The property is being held for the purpose of developing low-income rental housing, and when occupied the property will be occupied solely as a residence for low-income persons.. (b) July 1, 2030. (c) The property is owned by Laurel Hill Center, a nonprofit corporation organized in a manner that meets the criteria for a public benefit corporation as described under ORS 65.001(38). (d) The property is owned by Laurel Hill Center, a nonprofit corporation that expends no more than ten percent of its annual income from residential rentals for purposes other than acquisition, maintenance or repair of residential rental property for low-income persons, or for the provision of on-site child care services for the residents of the rental property. (e) The applicant has complied with the policies set forth in Section 5 of the Standards and Guidelines for Low-Income Rental Housing Property Tax Exemption adopted by council Resolution No. 5297 (Standards and Guidelines). (1) The applicant has signed a Rent Regulatory Agreement as described in Section 5.1 of the Standards and Guidelines and said agreement will be in effect for the duration of the tax exemption period. (2) As described in Section 5.2 of the Standards and Guidelines, the applicant Attachment A January 27, 2025 Meeting – Item 6 CC Agenda Page 33 -- 35 of 123 -- Laurel Hill Center River Road Housing Report and Recommendation - Page 2 of 2 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 to insure that the premises are maintained in decent, safe and sanitary conditions for the occupants. (f) The proposed development is consistent with the city's Housing Dispersal Policy. (g) The proposed development does not cause the displacement of low-income persons. (h) The proposed development does not cause destruction of historic properties. (i) The proposed development is otherwise consistent with the Eugene Code and adopted city regulations and policies. 4. Comments have been solicited from interested City departments, 4J School District, and the affected neighborhood group. No public comments were received. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Envision Eugene Comprehensive Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this ____ day of __________________, 2025. Print: Will Dowdy Sign: Community Development Manager of the Planning and Development Department Attachment A January 27, 2025 Meeting – Item 6 CC Agenda Page 34 -- 36 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON RIVER ROAD AND HUNSAKER AVENUE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-11-41, TAX LOTS 05701 AND 05900; ASSESSOR’S PROPERTY ACCOUNT NOS. 1917208 AND 0370815) (APPLICANT LAUREL HILL CENTER) The City Council of the City of Eugene finds that: A. Laurel Hill Center (2145 Centennial Plaza, Eugene, Oregon, 97401) is the owner of real property located on River Road and Hunsaker Avenue in Eugene, Oregon (Assessor’s Map 17-04-11-41, Tax Lots 05701 and 05900; Assessor’s Property Account Nos. 1917208 and 0370815), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Laurel Hill Center (2145 Centennial Plaza, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The Property for which the tax exemption is being sought is being held for future development of low-income housing. The applicant will develop the Property with at least 35 low-income units, including a mix of studio units and one-bedroom units. As development and financing activities progress, that mix of units may change a bit, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 35 low-income units on the Property. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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, the City Council approves the application of Laurel Hill Center for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04- Attachment B January 27, 2025 Meeting – Item 6 CC Agenda Page 35 -- 37 of 123 -- Resolution - Page 2 of 2 11-41, Tax Lots 05701 and 05900; Assessor’s Property Account Nos. 1917208 and 0370815; and more particularly described in Exhibit A attached to this Resolution, which will be developed with at least 35 low-income units. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2025, and continuing for a continuous period of 20 years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after and 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 July 1, 2030, and no extensions or exceptions were granted; or 2.2 The applicant fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 5297, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing units, 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 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, 2025. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment B January 27, 2025 Meeting – Item 6 CC Agenda Page 36 -- 38 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON RIVER ROAD AND HUNSAKER AVENUE IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-11-41, TAX LOTS 05701 AND 05900; ASSESSOR’S PROPERTY ACCOUNT NOS. 1917208 AND 0370815) (APPLICANT LAUREL HILL CENTER) The City Council of the City of Eugene finds that: A. Laurel Hill Center (2145 Centennial Plaza, Eugene, Oregon, 97401) is the owner of real property located on River Road and Hunsaker Avenue in Eugene, Oregon (Assessor’s Map 17-04-11-41, Tax Lots 05701 and 05900; Assessor’s Property Account Nos. 1917208 and 0370815), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Laurel Hill Center (2145 Centennial Plaza, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The Property for which the tax exemption is being sought is being held for future development of low-income housing. The applicant will develop the Property with at least 35 low-income units, including a mix of studio units and one-bedroom units. As development and financing activities progress, that mix of units may change a bit, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 35 low-income units on the Property. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of Laurel Hill Center for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Attachment C January 27, 2025 Meeting – Item 6 CC Agenda Page 37 -- 39 of 123 -- Resolution - Page 2 of 2 Exemption Program for the property identified as Assessor’s Map 17-04-11-41, Tax Lots 05701 and 05900; Assessor’s Property Account Nos. 1917208 and 0370815; and more particularly described in Exhibit A attached to this Resolution, which will be developed with at least 35 low- income units, because the applicant has failed to demonstrate satisfactory compliance with the criteria of Section 2.939(4) of the Eugene Code, 1971. Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten 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 is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment C January 27, 2025 Meeting – Item 6 CC Agenda Page 38 -- 40 of 123 -- Attachment D January 27, 2025 Meeting – Item 6 CC Agenda Page 39 -- 41 of 123 -- January 27, 2025 Meeting – Item 7 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Action Item: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for River Road Apartments Meeting Date: January 27, 2025 Agenda Item Number: 7 Department: Planning and Development Staff Contact: Laura Hammond www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT City Council is asked to adopt a resolution approving a 20-year Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for River Road Apartments, a future Affordable Housing development located at 621 River Road. Cascade Housing Association is the applicant and the property owner of record. The development will include 47 low-income rental housing units, a manager’s unit, and common areas. BACKGROUND Council adopted the LIRHPTE program in 1990. Since the adoption of the program, Council has approved tax exemptions for 40 affordable housing developments with more than 1,900 units. Council unanimously approved extending the LIRHPTE program for an additional ten years in 2020. The ordinance also enables recipients to apply for renewal of the 20-year LIRHPTE when a prior LIRPHTE period has expired. Council has approved LIRHPTE renewals for more than 400 units. Council reviews and takes action on each LIRHPTE request. Last year, City Council approved three LIRHPTE applications, for the provision and preservation of 285 units of housing affordable to people with low incomes in Eugene. Developments must meet criteria including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income (AMI). If an application meets the substantive criteria at Eugene Code (EC) 2.939(4) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; Council would need to adopt a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The requested tax exemption is for River Road Apartments, a future Affordable Housing development located at 621 River Road (see map in Attachment D). The development will include 47 low-income rental housing units (12 one-bedroom, 23 two-bedroom, and 12 three-bedroom units), a manager’s unit, and common areas. Resident services will be provided in partnership CC Agenda Page 40 -- 42 of 123 -- January 27, 2025 Meeting – Item 7 with St. Vincent de Paul Society of Lane County, Inc. The proposed River Road Apartments development by Cascade Housing Association will include three, 3-story buildings located on a 1.67-acre property along River Road. Several land use applications have been approved for the development including a Greenway Permit, Site Review and Adjustment Review. It has been awarded up to $263,279 in City System Development Charge exemptions and is applying for state Local Innovation and Fast Track (LIFT) Funds for Affordable Housing. If financing is completed in early 2025, construction could start in 2025, otherwise if financing is secured later in the year, construction would begin in 2026. The developer will offer rents ranging from $1,002 to $1,390 for one-, two-, and three-bedroom units, ensuring affordability for households at or below 50 percent and 60 percent AMI. Without the tax exemption, property expenses would increase, leading to higher rents and fewer resources for resident services. Approval of the LIRHPTE application will enable the developer to provide these affordable rates and ongoing services to residents. The requested exemption meets the substantive criteria at EC 2.939(4) as shown in the Report and Recommendation provided in Attachment A. No public comments were received during the public comment period. RELATED CITY POLICIES Housing Implementation Pipeline (HIP): The HIP lists the LIRHPTE program as an important tool for supporting housing that serves the public good. Approving River Road Apartments for a LIRHPTE helps preserve existing affordable units furthering the HIP's 5-year goals of increasing and maintaining the number of Affordable Housing units available to the community. City of Eugene Strategic Plan 2023-2026 – Approving a LIRHPTE for this development aligns with the City’s strategic plan: Urgent Community Needs - Stabilize the cost of housing. PREVIOUS COUNCIL DIRECTION May 26, 2020, Meeting Councilor Semple, seconded by Councilor Yeh, moved to adopt an Ordinance Concerning Low- Income Rental Housing Property Tax Exemptions and Amending Sections 2.938, 2.939 and 2.940 of the Eugene Code, 1971; and Resolution Adopting Amended Standards and Guidelines for Processing Applications for Low-Income Rental Housing Property Tax Exemptions and Repealing Resolution No. 5028. Passed 8:0 COUNCIL OPTIONS 1. Approve the tax exemption. 2. Deny the tax exemption. CC Agenda Page 41 -- 43 of 123 -- January 27, 2025 Meeting – Item 7 CITY MANAGER’S RECOMMENDATION Adopt the Resolution included in Attachment B approving a Low-Income Rental Housing Property Tax Exemption for River Road Apartments. SUGGESTED MOTION Move to adopt the resolution attached as Attachment B to this AIS, approving a low-income rental housing property tax exemption for property located on River Road in Eugene. ATTACHMENTS A. Report and Recommendation B. Resolution Approving the Tax Exemption C. Resolution Denying the Tax Exemption D. Map of the proposed site FOR MORE INFORMATION Staff Contact: Laura Hammond, Housing Tools Analyst Telephone: 541-682-5502 Staff E-Mail: LHammond@eugene-or.gov CC Agenda Page 42 -- 44 of 123 -- River Road Apartments Report and Recommendation - Page 1 of 2 REPORT AND RECOMMENDATION of the Community Development Manager of the Planning and Development Department Application of Cascade Housing Association For Low-Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property at 621 River Road, Eugene, OR 97404 RIVER ROAD APARTMENTS The Community Development Manager of the Planning and Development Department of the City of Eugene finds that: 1. Cascade Housing Association (the applicant) has submitted an application for a property tax exemption for the real property known as River Road Apartments, located at 621 River Road, Eugene, Oregon, 97404 ( 17-04-24-40 Tax Lot 03301; Property Account No. 1913042). Cascade Housing Association is the owner of the property that is the subject of the application. The applicant has a business mailing address of 1101 16th St., Springfield, Oregon 97477. The applicant has submitted an application for an exemption from ad valorem taxes through the City's Low-Income Rental Housing Property Tax Exemption (LIRHPTE) program (Sections 2.937 to 2.940 of the Eugene Code, 1971) for a property on which will be developed 47 low-income rental housing units (12 one-bedroom units, 23 two-bedroom units and 12 three-bedroom units) and common areas. 2. I have reviewed the application and find that the applicant has submitted all required materials and complies with the provisions of EC 2.939(4) and Sections 2.5 through 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. Specifically, I find: (a) The property, or portion thereof subject to the property tax exemption, is held for the purpose of developing low-income rental housing. When occupied, the property will be occupied solely as a residence for low-income persons. (b) tion was filed prior to July 1, 2030. (c) The property is owned by a nonprofit corporation organized in a manner that meets the criteria for a public benefit corporation as described under ORS 65.001(38). (d) The property is owned by Cascade Housing Association, a nonprofit corporation that expends no more than ten percent of its annual income from residential rentals for purposes other than acquisition, maintenance or repair of residential rental property for low-income persons, or for the provision of on-site child care services for the residents of the rental property. (e) The applicant has complied with the policies set forth in Section 5 of the Standards and Guidelines for Low-Income Rental Housing Property TaxExemption adopted by council Resolution No. 5297 (Standards and Guidelines). (1) The applicant has signed a Rent Regulatory Agreement as described in Section 5.1 of the Standards and Guidelines and said agreement will be in effect for the duration of the tax exemption period. (2) As described in Section 5.2 of the Standards and Guidelines, the applicant Attachment A January 27, 2025 Meeting – Item 7 CC Agenda Page 43 -- 45 of 123 -- River Road Apartments Report and Recommendation - Page 2 of 2 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 to insure that the premises are maintained in decent, safe and sanitary conditions for the occupants. (f) The proposed development is consistent with the city's Housing Dispersal Policy. (g) The proposed development does not cause the displacement of low-income persons. (h) The proposed development does not cause destruction of historic properties. (i) The proposed development is otherwise consistent with the Eugene Code and adopted city regulations and policies. 4. Comments have been solicited from interested City departments, 4J School District, and the affected neighborhood group. No public comments were received. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Envision Eugene Comprehensive Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this ____ day of __________________, 2025. Print: Will Dowdy Sign: Community Development Manager of the Planning and Development Department Attachment A January 27, 2025 Meeting – Item 7 CC Agenda Page 44 -- 46 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON RIVER ROAD IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-24-40, TAX LOT 03301; ASSESSOR’S PROPERTY ACCOUNT NO. 1913042) (APPLICANT CASCADE HOUSING ASSOCIATION) The City Council of the City of Eugene finds that: A. Cascade Housing Association (1101 16th St, Springfield, OR, 97477) is the owner of real property located on River Road in Eugene, Oregon (Assessor’s Map 17-04-24-40, Tax Lot 03301; Assessor’s Property Account No. 1913042), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Cascade Housing Association (1101 16th St, Springfield, OR, 97477) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The Property for which the tax exemption is being sought is being held for future development of low-income housing. The applicant plans to develop 12 one-bedroom units, 24 two-bedroom units, and 12 three-bedroom units, for a total of 48 low-income units on the property. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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, the City Council approves the application of Cascade Housing Association for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-24-40, Tax Lot 03301; Assessor’s Property Account No. 1913042; and more particularly described in Exhibit A attached to this Resolution, which will be developed in the future with 12 Attachment B January 27, 2025 Meeting – Item 7 CC Agenda Page 45 -- 47 of 123 -- Resolution - Page 2 of 2 one-bedroom units, 24 two-bedroom units, and 12 three-bedroom units, for a total of 48 low- income units. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2025, and continuing for a continuous period of 20 years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after and 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 July 1, 2030, and no extensions or exceptions were granted; or 2.2 The applicant fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 5297, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing units, 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 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, 2025. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment B January 27, 2025 Meeting – Item 7 CC Agenda Page 46 -- 48 of 123 -- Legal Description _____ ··--- _ ___ __ __ -Aunit �d-�r.atcd in fu;�o�11h ½ of Section 24, Township 17 South. Range 4 West�-��-- Wmo.mette M�diw1, swd mtlt of land being more particularly described as follows: Cornmen�g at a 5/8 inch uon rebar m1U"ldng the southeast comer of Section 24, TownsltiJi J 7 South, Range 4 West of the Willamette Meridil.m, Baid southeast corner bears South 01 °44'17" Wesl 5282.97 feet from tbe northeast comer of said Section 24; Thence No,rth 76°44 '03" Wost 2389 .53 feet to a 5/8 inch iion rebar marking the POINT OF BEGINNtNG of this unit ofland; Thence rumung parallel to the south line of Lot 4 of County Survey No. 609, North 87°54'22" West a di!lfance of 393.66 feet to a. point on the easter.ly tight-of-way line of River Road; Thence along the eastaly right-of-way line of River Road, North 05°25'24" West a distance of 219.14 feet; Thence leaving the eBBterly right-of-wny line of River Road ru1d nm.ning parallel tn the soutI, Ji.De ofLot 4 of County Survey No. 609, South 87°54'22" East o dislnnce of 443.83 feet; Thei:ice South 01 °47'21" West II distance of28.88 feet; Thence nmning parallel to the south line of Lot 4 of County Survey No. 609, North 87°S4'22" West a distance of 20. 75 feet; Thence South 01 958'38" West a distance of 198.29 feet to tho point of beginning, all in the City of Eugene, Lane County, Oregon aod contalnin� 93,377 square feet oflWld, more or Jess. Exhibit AAttachment B January 27, 2025 Meeting – Item 7 CC Agenda Page 47 -- 49 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON RIVER ROAD IN EUGENE, OREGON (ASSESSOR’S MAP 17-04-24-40, TAX LOT 03301; ASSESSOR’S PROPERTY ACCOUNT NO. 1913042) (APPLICANT CASCADE HOUSING ASSOCIATION) The City Council of the City of Eugene finds that: A. Cascade Housing Association (1101 16th St, Springfield, OR, 97477) is the owner of real property located on River Road in Eugene, Oregon (Assessor’s Map 17-04-24-40, Tax Lot 03301; Assessor’s Property Account No. 1913042), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Cascade Housing Association (1101 16th St, Springfield, OR, 97477) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940). C. The Property for which the tax exemption is being sought is being held for future development of low-income housing. The applicant plans to develop 12 one-bedroom units, 24 two-bedroom units, and 12 three-bedroom units, for a total of 48 low-income units on the property. The applicant is seeking tax exemption for the entire Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(4), and the eligibility requirements at Section 2.10 of the Standards and Guidelines adopted by Resolution No. 5297. 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. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of Cascade Housing Association for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-04-24-40, Tax Lot 03301; Assessor’s Property Account No. 1913042; and more particularly described in Exhibit A attached to this Resolution, which will be developed in the future with 12 one- Attachment C January 27, 2025 Meeting – Item 7 CC Agenda Page 48 -- 50 of 123 -- Resolution - Page 2 of 2 bedroom units, 24 two-bedroom units, and 12 three-bedroom units, for a total of 48 low-income units because the applicant has failed to demonstrate satisfactory compliance with the criteria of Section 2.939(4) of the Eugene Code, 1971. Section 2. The City Manager, or the Manager's designee, is requested to forward a copy of this Resolution to the applicant within ten 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 is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment C January 27, 2025 Meeting – Item 7 CC Agenda Page 49 -- 51 of 123 -- Legal Description _____ ··--- _ ___ __ __ -Aunit �d-�r.atcd in fu;�o�11h ½ of Section 24, Township 17 South. Range 4 West�-��-- Wmo.mette M�diw1, swd mtlt of land being more particularly described as follows: Cornmen�g at a 5/8 inch uon rebar m1U"ldng the southeast comer of Section 24, TownsltiJi J 7 South, Range 4 West of the Willamette Meridil.m, Baid southeast corner bears South 01 °44'17" Wesl 5282.97 feet from tbe northeast comer of said Section 24; Thence No,rth 76°44 '03" Wost 2389 .53 feet to a 5/8 inch iion rebar marking the POINT OF BEGINNtNG of this unit ofland; Thence rumung parallel to the south line of Lot 4 of County Survey No. 609, North 87°54'22" West a di!lfance of 393.66 feet to a. point on the easter.ly tight-of-way line of River Road; Thence along the eastaly right-of-way line of River Road, North 05°25'24" West a distance of 219.14 feet; Thence leaving the eBBterly right-of-wny line of River Road ru1d nm.ning parallel tn the soutI, Ji.De ofLot 4 of County Survey No. 609, South 87°54'22" East o dislnnce of 443.83 feet; Thei:ice South 01 °47'21" West II distance of28.88 feet; Thence nmning parallel to the south line of Lot 4 of County Survey No. 609, North 87°S4'22" West a distance of 20. 75 feet; Thence South 01 958'38" West a distance of 198.29 feet to tho point of beginning, all in the City of Eugene, Lane County, Oregon aod contalnin� 93,377 square feet oflWld, more or Jess. Exhibit A Attachment C January 27, 2025 Meeting – Item 7 CC Agenda Page 50 -- 52 of 123 -- Attachment D January 27, 2025 Meeting – Item 7 CC Agenda Page 51 -- 53 of 123 -- January 27, 2025 Meeting – Item 8 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Goal Action: Adoption of a Resolution Approving a Low-Income Rental Housing Property Tax Exemption for Whiteaker Commons Meeting Date: January 27, 2025 Agenda Item Number: 8 Department: Planning and Development Staff Contact: Laura Hammond www.eugene-or.gov Contact Telephone Number: 541-682-5502 ISSUE STATEMENT City Council is asked to adopt a resolution approving a 20-year Low-Income Rental Housing Property Tax Exemption (LIRHPTE) for Whiteaker Commons, a future Affordable Housing development site located on the southeast corner of the intersection of West 5th Avenue and Adams Street. Red Apple Square LLC is the applicant and the property owner of record. The development will include a minimum of 110 low-income rental housing units. BACKGROUND Council adopted the LIRHPTE program in 1990. Since the adoption of the program, Council has approved tax exemptions for 40 affordable housing developments with more than 1,900 units. Council unanimously approved extending the LIRHPTE program for an additional ten years in 2020. The ordinance also enables recipients to apply for renewal of the 20-year LIRHPTE when a prior LIRPHTE period has expired. Council has approved LIRHPTE renewals for more than 400 units. Council reviews and takes action on each LIRHPTE request. Last year, City Council approved three LIRHPTE applications, for the provision and preservation of 285 units of housing affordable to people with low incomes in Eugene. Developments must meet criteria including requirements for rents and incomes limited to households with incomes at or below 60 percent of area median income (AMI). If an application meets the substantive criteria at Eugene Code (EC) 2.939(3) as referenced in the Report and Recommendation (Attachment A), the City must grant the exemption by resolution (Attachment B). A decision to deny the exemption cannot be made by simple motion or inaction; Council would need to adopt a resolution (Attachment C) that explains how the applicant has failed to demonstrate that the tax exemption is in the public interest. Summary of requested tax exemption The Property for which the tax exemption is being sought is located on the southeast corner of the intersection of West 5th Avenue and Adams Street (see map in Attachment D) and is being held for future development of low-income housing. The applicant will develop the Property with at least 110 low-income units. At this time, the applicant plans to develop a mix of units including studio, one-, and two-bedroom units. As the development and financing activities progress, that mix of units may change, but regardless of any changes in the mix of unit types, the applicant has CC Agenda Page 52 -- 54 of 123 -- January 27, 2025 Meeting – Item 8 committed to construct at least 110 low-income units on the Property. If the total number of units falls below the minimum of 110, the development will be required to submit a new LIRHPTE application for review and approval by the City Council. The proposed Whiteaker Commons development by Red Apple Square LLC will be a five-story new construction building located on a 0.49-acre parcel. The developer is currently assembling the financing for the project including applying for state Local Innovation and Fast Track (LIFT) Funds for Affordable Housing and 4 percent Low-Income Housing Tax Credits (LIHTC). If financing is completed by 2026, construction is anticipated to begin in 2027. The developer will offer rents between $936 and $1,203 per unit for studio, one-, and two- bedroom units, affordable to households at or below 60 percent AMI. The LIRHPTE will reduce operating costs allowing the development to maintain rents affordable that this level. The apartments would not be able to achieve their proposed level of affordability without the property tax exemption. The requested exemption meets the substantive criteria at EC 2.939(3) as shown in the Report and Recommendation provided in Attachment A. One email was received during the public comment period. The commenter had questions about the timeline for development, potential traffic disruptions during construction, the type of units in the development and parking. RELATED CITY POLICIES Housing Implementation Pipeline (HIP): The HIP lists the LIRHPTE program as an important tool for supporting housing that serves the public good. Approving Whiteaker Commons for a LIRHPTE helps preserve existing affordable units furthering the HIP's 5-year goals of increasing and maintaining the number of Affordable Housing units available to the community. City of Eugene Strategic Plan 2023-2026: Approving the requested LIRHPTE aligns with the City’s strategic plan: Urgent Community Needs - Stabilize the cost of housing. PREVIOUS COUNCIL DIRECTION May 26, 2020, Meeting Councilor Semple, seconded by Councilor Yeh, moved to adopt an Ordinance Concerning Low- Income Rental Housing Property Tax Exemptions and Amending Sections 2.938, 2.939 and 2.940 of the Eugene Code, 1971; and Resolution Adopting Amended Standards and Guidelines for Processing Applications for Low-Income Rental Housing Property Tax Exemptions and Repealing Resolution No. 5028. Passed 8:0 COUNCIL OPTIONS 1. Approve the tax exemption. 2. Deny the tax exemption. CC Agenda Page 53 -- 55 of 123 -- January 27, 2025 Meeting – Item 8 CITY MANAGER’S RECOMMENDATION Adopt the Resolution included in Attachment B approving a Low-Income Rental Housing Property Tax Exemption for Whiteaker Commons. SUGGESTED MOTION Move to adopt the resolution attached as Attachment B to this AIS, approving a low-income rental housing property tax exemption for property located on Adams Street in Eugene. ATTACHMENTS A. Report and Recommendation B. Resolution Approving the Tax Exemption C. Resolution Denying the Tax Exemption D. Map of the proposed site FOR MORE INFORMATION Staff Contact: Laura Hammond, Housing Tools Analyst Telephone: 541-682-5502 Staff E-Mail: LHammond@eugene-or.gov CC Agenda Page 54 -- 56 of 123 -- Whiteaker Commons Report and Recommendation - Page 1 of 2 REPORT AND RECOMMENDATION of the Community Development Manager of the Planning and Development Department Application of Red Apple Square, LLC For Low-Income Rental Housing Property Tax Exemption (Section 2.937 to 2.940 of the Eugene Code, 1971) for Property Located on the Southeast Corner of the Intersection of West 5th Avenue and Adams Street WHITEAKER COMMONS The Community Development Manager of the Planning and Development Department of the City of Eugene finds that: 1. Red Apple Square, LLC (the applicant) has submitted an application for property tax exemption for the real property known as Whiteaker Commons, located on the southeast corner of the intersection of West 5th Avenue and Adams Street, Eugene, Oregon, 97401 ( 17-03-31-22 Tax Lot 03501; 1769551). Red Apple Square, LLC is the owner of the property that is the subject of the application. The applicant has a business mailing address of 555 Lincoln Street, Eugene Oregon 97401. The applicant has submitted an application for an exemption from ad valorem taxes through the City's Low-Income Rental Housing Property Tax Exemption (LIRHPTE) program (Sections 2.937 to 2.940 of the Eugene Code, 1971) for at least 110 low-income units. At this time, the applicant plans to develop mix of units including studio, one-, and two-bedroom units. As the development and financing activities progress, that mix of units may change, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 110 low-income units on the Property 2. I have reviewed the application and find that the applicant has submitted all required materials and complies with the provisions of EC 2.939(3) and Sections 2.1 through 2.9 of the Standards and Guidelines adopted by Resolution No. 5297. Specifically, I find: (a) The property is currently held for the purpose of developing low income rental housing, and when developed, will be offered for rental solely as a residence for low- income persons. (b) The required rent payment will reflect the full value of the property tax exemption. (c) The housing units on the property will be constructed after February 12, 1990. (d) Policy. (e) The proposed development will not cause displacement of low-income persons. (f) The proposed development will not cause destruction of historic properties, as defined by Eugene Code. (g) The proposed development is otherwise consistent with Eugene Code and adopted City regulations and policies. (h) The applicant has signed a Rent Regulatory Agreement as described in Section 5.1 of the Standards and Guidelines and said agreement will be in effect for the duration of the tax exemption period. Attachment A January 27, 2025 Meeting – Item 8 CC Agenda Page 55 -- 57 of 123 -- Whiteaker Commons Report and Recommendation - Page 2 of 2 (i) As described in Section 5.2 of the Standards and Guidelines, the applicant 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 to insure that the premises are maintained in decent, safe and sanitary conditions for the occupants. 4. Comments have been solicited from interested City departments, 4J School District, and the affected neighborhood group. One comment was received during the public comment period with questions about the timeline for development, potential traffic disruptions during construction, the type of units in the development and parking. Therefore, based on the above findings, the proposed project conforms with all applicable City Code provisions, local plans, planning regulations, the Envision Eugene Comprehensive Low-Income Rental Housing Property Tax Exemption, and I recommend that the application be approved. Dated this ____ day of __________________, 2025. Print: Will Dowdy Sign: Community Development Manager of the Planning and Development Department Attachment A January 27, 2025 Meeting – Item 8 CC Agenda Page 56 -- 58 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION APPROVING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON THE SOUTHEAST CORNER OF THE INTERSECTION OF WEST 5TH AVENUE AND ADAMS STREET IN EUGENE, OREGON (ASSESSOR’S MAP 17-03-31-22, TAX LOT 03501; ASSESSOR’S PROPERTY ACCOUNT NO. 1769551) (APPLICANT RED APPLE SQUARE, LLC.) The City Council of the City of Eugene finds that: A. Red Apple Square, LLC (555 Lincoln Street, Eugene, Oregon, 97401) is the owner of real property located on West 5th Avenue in Eugene, Oregon (Assessor’s Map 17-03- 31-22, Tax Lot 03501; Assessor’s Property Account No. 1769551), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Red Apple Square, LLC (555 Lincoln Street, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940.) C. The Property for which the tax exemption being sought is being held for future development of low-income housing. The applicant will develop the Property with at least 110 low-income units. At this time, the applicant plans to develop a mix of units including studio, one-, and two-bedroom units. Prior to construction, that mix of units may change a bit, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 110 low-income units on the Property.. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(3), and the eligibility requirements at Sections 2.1-2.9 of the Standards and Guidelines adopted by Resolution No. 5297. 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, the City Council approves the application of Red Apple Square, LLC for an ad valorem tax exemption under the City’s Low-Income Rental Attachment B January 27, 2025 Meeting – Item 8 CC Agenda Page 57 -- 59 of 123 -- Resolution - Page 2 of 2 Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-03- 31-22, Tax Lot 03501; Assessor’s Property Account No. 1769551; and more particularly described in Exhibit A attached to this Resolution, which is being held for future development of no fewer than 110 low-income housing units on the Property. Section 2. The land and units described in Section 1 above are declared exempt from local ad valorem property taxation commencing July 1, 2025, and continuing for a continuous period of 20 years unless earlier terminated in accordance with the provisions of Section 2.940 of the Eugene Code, 1971, which provides for termination after and 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 July 1, 2030, and no extensions or exceptions were granted; or 2.2 The applicant fails to comply with provisions of ORS 307.515 to 307.523, provisions of the Eugene Code, 1971, the Standards and Guidelines adopted by Council Resolution No. 5297, or any conditions imposed in this Resolution. The tax exemption shall be terminated immediately, without right of notice or appeal, pursuant to the provisions of ORS 307.531 in the event that the county assessor determines that a change of use to other than that allowed has occurred for the housing units, 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 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, 2025. The copy of the Resolution sent to the applicant shall be accompanied by a notice explaining the grounds for possible termination of the exemption prior to the end of the exemption period and the effects of the termination. Section 4. This Resolution is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment B January 27, 2025 Meeting – Item 8 CC Agenda Page 58 -- 60 of 123 -- Legal Description Exhibit A Attachment B January 27, 2025 Meeting – Item 8 CC Agenda Page 59 -- 61 of 123 -- Resolution - Page 1 of 2 RESOLUTION NO. ______ A RESOLUTION DENYING A LOW-INCOME RENTAL HOUSING PROPERTY TAX EXEMPTION FOR PROPERTY LOCATED ON THE SOUTHEAST CORNER OF THE INTERSECTION OF WEST 5TH AVENUE AND ADAMS STREET IN EUGENE, OREGON (ASSESSOR’S MAP 17-03-31-22, TAX LOT 03501; ASSESSOR’S PROPERTY ACCOUNT NO. 1769551) (APPLICANT RED APPLE SQUARE, LLC.) The City Council of the City of Eugene finds that: A. Red Apple Square, LLC (555 Lincoln Street, Eugene, Oregon, 97401) is the owner of real property located on West 5th Avenue in Eugene, Oregon (Assessor’s Map 17-03- 31-22, Tax Lot 03501; Assessor’s Property Account No. 1769551), more particularly described in Exhibit A attached to this Resolution (“the Property”). B. Red Apple Square, LLC (555 Lincoln Street, Eugene, Oregon, 97401) (the applicant) has submitted an application for an exemption from ad valorem taxes on the Property beginning July 1, 2025, under the City’s Low-Income Rental Housing Property Tax Exemption Program (EC 2.937 to 2.940.) C. The Property for which the tax exemption being sought is being held for future development of low-income housing. The applicant will develop the Property with at least 110 low-income units. At this time, the applicant plans to develop a mix of units including studio, one-, and two-bedroom units. Prior to construction, that mix of units may change a bit, but regardless of any changes in the mix of unit types, the applicant has committed to construct at least 110 low-income units on the Property. D. The Community Development Manager of the Planning and Development Department, as designee of the City Manager, has prepared a Report and Recommendation recommending that the application be approved and the exemption granted. In making that recommendation, the Community Development Manager found that the applicant submitted all materials, documents, and fees required by Section 2.938 of the Eugene Code, 1971 (EC), and is in compliance with the policies set forth in Section 5 of the Standards and Guidelines adopted by Resolution No. 5297. In addition, the Community Development Manager found that the applicant has complied with the criteria for approval provided in EC 2.939(3), and the eligibility requirements at Sections 2.1-2.9 of the Standards and Guidelines adopted by Resolution No. 5297. 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. Notwithstanding the findings in the Community Development Manager’s Report and Recommendation, the City Council denies the application of Red Apple Square, LLC Attachment C January 27, 2025 Meeting – Item 8 CC Agenda Page 60 -- 62 of 123 -- Resolution - Page 2 of 2 for an ad valorem tax exemption under the City’s Low-Income Rental Housing Property Tax Exemption Program for the property identified as Assessor’s Map 17-03-31-22, Tax Lot 03501; Assessor’s Property Account No. 1769551; and more particularly described in Exhibit A attached to this Resolution, which is being held for future development of low-income housing, because the applicant has failed to demonstrate satisfactory compliance with the criteria in Section 2.939(3) of the Eugene Code, 1971. Section 2. The City Manager, or the Manager'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 is effective immediately upon its passage by the City Council. The foregoing Resolution adopted the ____ day of January, 2025. ________________________ City Recorder Attachment C January 27, 2025 Meeting – Item 8 CC Agenda Page 61 -- 63 of 123 -- Legal Description Exhibit A Attachment C January 27, 2025 Meeting – Item 8 CC Agenda Page 62 -- 64 of 123 -- Attachment D January 27, 2025 Meeting – Item 8 CC Agenda Page 63 -- 65 of 123 -- January 27, 2025 Meeting – Item 9 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Priority Goal Action: Recommend Approval of Resources for Housing Affordable to People with Low-Incomes Meeting Date: January 27, 2025 Agenda Item Number: 9 Department: Planning and Development Staff Contact: Ellen Meyi-Galloway www.eugene-or.gov Contact Telephone Number: 541-682-5532 ISSUE STATEMENT Council is asked to recommend the use of two separate funds received from the Federal government, HOME Investment Partnerships Program (HOME) funds and HOME American Rescue Plan (HOME-ARP) funds for development proposals submitted in response to the Eugene- Springfield HOME Consortium’s 2024 Request for Proposals (RFP). BACKGROUND The HOME RFP process is guided by the priority needs and strategies identified in the Eugene- Springfield Consolidated Plan, the Annual Action Plans, and the Eugene-Springfield HOME Intergovernmental Agreement. The 2020 Consolidated Plan identified priority needs for five populations including low-income renters, low-income homeowners, people experiencing homelessness, special populations with identified needs, and people who are unemployed/underemployed. The Consolidated Plan established a 5-year goal to increase the affordable housing supply by 400 units using federal HOME funds. Since plan adoption in April 2020, 8 projects have been awarded HOME funds resulting in 398 units that are either complete, under construction, or in the pipeline to be constructed by 2025. Since 2020, 24 units in projects that were awarded HOME funds in Eugene and Springfield were not able to move forward, and 87 units were delayed because they could not complete their financing. This was due to rising construction costs and other difficult market conditions, high interest rates for private financing, competition for limited financing at the state level, and more. HOME Program One way the City expands affordable housing opportunities for low-income persons is through the HOME Program, a federal program administered by the U.S. Department of Housing and Urban Development (HUD). In 1992, the cities of Eugene and Springfield formed the Eugene-Springfield HOME Consortium in order to increase the amount of HOME funds received and to enable funding of HOME activities in Springfield. Eugene receives the HOME funds from HUD on behalf of the HOME Consortium and is responsible for the oversight and administration of HOME funds in both jurisdictions. Eugene’s HOME funds decreased by 21 percent in 2024 and, when adjusted for inflation, are almost half of what the City received 20 years ago. CC Agenda Page 64 -- 66 of 123 -- January 27, 2025 Meeting – Item 9 HOME funds are offered as a development subsidy through the Affordable Housing RFP process. The HOME Consortium Governing Board (Governing Board) makes final decisions on the use of HOME funds for development projects based on the input from the HOME Consortium’s Evaluation Committee and the recommendations of the Eugene and Springfield City Councils. The Governing Board is composed of the Eugene and Springfield Mayors, one Springfield City Councilor, and one Eugene City Councilor. HOME-ARP The U.S. Congress approved a one-time source of HOME funds through the American Rescue Plan Act of 2021 called HOME-ARP. The funds were distributed by HUD to the HOME jurisdictions. The HOME-ARP program has similarities and differences to the regular HOME program. The primary difference is that HOME-ARP funds must serve specific vulnerable Qualifying Populations including people experiencing homelessness, people at risk of homelessness, people fleeing or attempting to flee domestic violence and people with greatest housing instability with attention to veterans meeting the eligibility criteria of one or more Qualifying Populations. The HOME Consortium performed a detailed analysis of needs in the community, including outreach with the public and key stakeholders, to determine the uses of the funds. HUD approved the Governing Board’s HOME-ARP Allocation Plan in 2022 that established the use of HOME-ARP funds for Rental Housing development, Supportive Services and Non-profit Operating Assistance. The Rental Housing and Supportive Services funds were offered to housing developers and service providers through the 2024 RFP process. Any non-profit organization that is awarded a direct HOME-ARP award in Eugene and Springfield will be eligible for HOME-ARP Non-Profit Operating Assistance. RFP Process Through the 2024 HOME RFP, $2,529,855 were made available for projects in Eugene and Springfield that addressed the needs of people with low and very-low incomes and special populations, with $1,842,027 available for development proposals in Eugene. Three development proposals in Eugene were received through the RFP. Through the HOME-ARP RFP $3,282,910 were offered in Rental Housing development funds, and $500,000 in Supportive Services funds to serve Qualifying Populations in Eugene and Springfield. Eugene made available $2,537,182 in Rental Housing development funds and $300,000 in Supportive Services funds to serve the residents in the developments. Two development proposals in Eugene were received through the RFP. The development proposals are reviewed and scored by an Evaluation Committee. Eugene City Council reviews the Eugene proposals, the Evaluation Committee recommendations for Eugene proposals, and makes a recommendation for the Governing Board. Final HOME and HOME-ARP funding decisions will be made by the Governing Board. In instances where not all of the funds from an RFP are awarded to a project proposal, the remaining funds are made available again in the next RFP. CC Agenda Page 65 -- 67 of 123 -- January 27, 2025 Meeting – Item 9 Summary of the Proposals The five applications submitted for HOME funds and HOME-ARP funds included four sites shown on the map in Attachment A. (One development site applied for both HOME funds and HOME- ARP funds.) The following proposal summaries are presented with the highest scoring proposal for HOME funds and highest scoring proposal for HOME-ARP funds listed first. See Attachments B through E for images and additional information about each proposal. • The Coleman – Homes for Good requested $1,200,000 in HOME funds to build 51 income- qualified units and one unrestricted on-site manager unit in partnership with Sponsors, Inc. on Lane County donated land at the northeast corner of Highway 99 North and Roosevelt Boulevard in the Trainsong Neighborhood. The new, 4-story building would include 12 studio apartments, 39 one-bedroom apartments, supportive services office space, a meeting room, and Sponsors’s Re-entry Resource Center. Common space would include a community room with kitchen, laundry facilities and a fitness room. All units would serve residents with histories of incarceration earning no more than 60 percent Area Median Income (AMI). Sponsors and other partner agencies would provide individualized supportive services and group classes. This development proposal was awarded HOME funds in the 2021 RFP process but withdrew from the award because it did not secure the needed State subsidy in that funding cycle. The current proposal also has awards of Eugene Affordable Housing Trust Funds and City Fee Assistance. • Laurel Hill Center River Road Housing – Laurel Hill Center requested the full amount of HOME-ARP Rental Housing development funds ($2,537,182) to build approximately 50- units (and a minimum of 35 units) of income-qualified housing and an on-site manager unit on land they recently acquired on Hunsaker Lane and River Road in the Santa Clara neighborhood. The development is in early stages of planning for several residential buildings (current estimate of four) with a mix of studio and 1-bedroom units. The site would include open space, some parking, and a community building, which would include meeting space and office space for service providers, a community room with kitchen, and laundry facilities. All units would serve Qualifying Populations prioritizing people with mental health, behavioral health and substance use disorders earning no more than 50% AMI. The proposal requested the full amount of HOME-ARP Supportive Services funds ($300,000) to provide individualized services to residents to develop self-sufficiency and remove barriers to housing stability. The proposal plans to also apply for Eugene Systems Development Charge (SDC) exemptions and Affordable Housing Trust Funds. Council will consider their Low-Income Rental Housing Property Tax Exemption (LIRHPTE) application January 27, 2025. • Aurora West – Confluence Development, LLC requested $1,405,930 in HOME funds and $863,215 in HOME-ARP funds to build 114 income-qualified Single Room Occupancy units (SROs) and an on-site manager unit on land they own at 1413 Charnelton Street in the Jefferson Westside neighborhood. The proposal would relocate the existing commercial tenant, demolish the existing building, and construct a new 6-story building. All units were proposed to serve people earning no more than 60% AMI enrolled in higher education or vocational programs. Students are not a population identified in the 2020 Consolidated Plan or the HOME-ARP Allocation Plan that could be prioritized for HOME or HOME-ARP units. The proposal would set aside some units for veterans, youth entering independence CC Agenda Page 66 -- 68 of 123 -- January 27, 2025 Meeting – Item 9 from foster care, and people with disabilities. The proposed Qualifying Population for HOME-ARP units was people at greatest risk of housing instability. The proposal includes basic resident services including financial education and other skill building classes but no individualized services. The applicant indicated they would also apply for Eugene SDC exemptions and a LIRHPTE. • 6th Avenue Cottages – Martin Henner requested $1,000,000 in HOME funds to build ten 1- bedroom detached homes on property he owns on 6th Avenue west of Blair Boulevard in the Whiteaker neighborhood. All units were proposed to serve people earning no more than 60 percent AMI. Each unit would include outdoor space for gardens. A detached community building would be located near 6th Avenue. The development would not provide services beyond basic referrals to supportive services agencies. The applicant indicated they would also apply for Eugene SDC exemptions and a LIRHPTE. Evaluation Committee Scoring In the evaluation process, the Evaluation Committee scores and ranks the proposals for consideration by the applicable City Council and the Governing Board. The proposals were reviewed according to the following criteria: 1) project concept and design, 2) site feasibility, 3) population and services, 4) cost benefit, 5) financial feasibility, and 6) organizational experience and performance. The evaluation includes a cost comparison analysis that compares development proposal financing with recent past projects. The comparison has many factors, including acquisition costs, development soft costs, hard construction costs, total development cost, cost per unit, cost per square foot, cost per bedroom and more. When compared to several similar recent developments (all one-building developments) costs have gone up significantly due to inflation of labor and materials in the overall construction market. The 2024 Evaluation Committee members included: Eugene Councilor Emily Semple; Springfield Councilor Kori Rodley; Savannah Olsen, who represented the Springfield Community Development Advisory Committee (CDAC) for HOME proposals; Sami Allen, who represented the Springfield CDAC for HOME-ARP proposals; Katy Alvarado with Catholic Community Services representing low-income populations; and Dan Straub, President of Tokatee Capital Management LLC, a real estate investment and development company. Six written public comments were received about the Aurora West proposal with concerns about height, parking, services, etc. One comment was provided at the Evaluation Committee public hearing in support of the Coleman proposal. The Evaluation Committee’s scores clearly demonstrated support for the two recommended proposals: Homes for Good Housing Agency (HOME award) and Laurel Hill Center (HOME-ARP award). The development proposals from Homes for Good Housing Agency (Homes for Good) and Laurel Hill Center would add up to 105 units of Affordable Housing with supportive services in the community. Next Steps Following Council consideration of the Eugene proposals, if funding is tentatively awarded by the Governing Board at their meeting February 11, 2025, there are additional steps before funds can CC Agenda Page 67 -- 69 of 123 -- January 27, 2025 Meeting – Item 9 be used. Developers must secure all other development financing and meet all HUD regulations as conditions of the award. After all conditions are met, the City would execute a HOME loan agreement to provide HOME or HOME-ARP funds for the development. RELATED CITY POLICIES Housing Implementation Pipeline (HIP) – The HIP has a 5-year goal to create Affordable Housing units. Recommending funding for these HOME/HOME-ARP development proposals would support additional units in the pipeline. City of Eugene Strategic Plan 2023-2026 – The proposed funding aligns with the Urgent Community Needs area of the City’s strategic plan: Stabilize the cost of housing. HUD 2020 Consolidated Plan – The Consolidated Plan has a 5-year goal to use HOME funds to further the HUD goal to Increase the Supply of Affordable Housing. PREVIOUS COUNCIL DIRECTION April 27, 2020 Work Session Councilor Semple, seconded by Councilor Yeh, moved to adopt Resolution No. 5294, a Resolution Approving the Eugene-Springfield 2020 Consolidated Plan. Passed 8:0 January 24, 2022 Work Session Councilor Syrett, seconded by Councilor Keating, moved to approve the Housing Implementation Pipeline (HIP). Passed 6:0 (Councilors Evans and Groves absent). January 24, 2022 Council Meeting Council recommended HOME funds to The Coleman. Councilor Syrett, seconded by Councilor Keating, moved to recommend full funding of $550,000 for Polk 2.0, utilizing $550,000 in HOME funds from the City of Eugene’s HOME allocation and in addition, moved to recommend full funding of $1,048,766 for The Coleman, utilizing $580,623 in HOME funds from the City of Eugene’s HOME allocation and, if Springfield agrees pursuant to the HOME Consortium’s Flexibility Policy, $468,143 in HOME funds from the City of Springfield’s HOME allocation. Passed 6:0 (Councilors Evans and Groves absent). May 22, 2023 Council Meeting Council awarded The Coleman by Homes for Good with funds from the Affordable Housing Trust Fund. Councilor Keating, seconded by Councilor Zelenka, moved to approve the use of $321,528 of Affordable Housing Trust Funds for Grant Street Grow Homes by Cultivate Inc, $383,434 of CC Agenda Page 68 -- 70 of 123 -- January 27, 2025 Meeting – Item 9 Affordable Housing Trust Funds for Bridges on Broadway by Homes for Good, and$552,650 of Affordable Housing Trust Funds for The Coleman by Homes for Good. Passed 8:0 COUNCIL OPTIONS 1. Recommend awarding Homes for Good $1,200,000 of HOME funds for The Coleman proposal and recommend awarding Laurel Hill Center the full amount of HOME-ARP Rental Housing funds ($2,537,182) and HOME-ARP Supportive Services funds ($300,000) for the River Road Housing proposal. 2. Recommend the use of HOME and HOME-ARP funding for the two projects with specific modifications as determined by the City Council. 3. Decline to recommend HOME funding or HOME-ARP funding for one or more of the proposed projects. CITY MANAGER’S RECOMMENDATION The City Manager recommends Council select Option 1. SUGGESTED MOTION Move to recommend awarding Homes for Good $1,200,000 of HOME funds for The Coleman proposal and recommend awarding Laurel Hill Center the full amount of HOME-ARP Rental Housing funds ($2,537,182) and HOME-ARP Supportive Services funds ($300,000) for the River Road Housing proposal. ATTACHMENTS A. Map of the proposed development sites B. Summary of The Coleman proposal C. Summary of Laurel Hill Center River Road Housing proposal D. Summary of 6th Avenue Cottages proposal E. Summary of Aurora West proposal FOR MORE INFORMATION Staff Contact: Ellen Meyi-Galloway, Affordable Housing Production Manager Telephone: 541-682-5532 Staff E-Mail: EMeyi-Galloway@eugene-or.gov CC Agenda Page 69 -- 71 of 123 -- Attachment A January 27, 2025 Meeting – Item 9 CC Agenda Page 70 -- 72 of 123 -- The Coleman Homes for Good Housing Agency Hwy 99 N and Roosevelt Blvd. • New construction HOME proposal • 52 units/ 52 bedrooms: 12 studio, 40 one-bedroom • 51 units households earning no more than 60% AMI, and one unrestricted on- site manager unit • Serving people with histories of incarceration. • Supportive services provided by Sponsors, Inc. and other partner agencies. • Four story building with common area including supportive services office space, a meeting room, and Sponsors’s Re-entry Resource Center, a community room with kitchen, laundry facilities and a fitness room. • Sponsors would provide individual supportive services and group classes. • $2,223,497 in City funds: o HOME funds $1,200,000 o AHTF $552,650 o City Fee Assistance $470,847 • Total development cost: $22,263,226 • Cost per unit: $436,534 • Cost per square foot: $448 • Other proposed funding sources: state Local Innovation Fast Track funds, Trillium grants, Federal Home Loan Bank loan, Private bank loan, Lane County property, EWEB incentives, Sponsors Inc. grant Attachment B January 27, 2025 Meeting – Item 9 CC Agenda Page 71 -- 73 of 123 -- River Road Housing Laurel Hill Center River Rd & Hunsaker Ln • New construction HOME-ARP proposal • Approximately 50 units: mix of studio and 1- bedroom units (minimum of 35 units) • Serving Qualifying Populations: people experiencing homelessness, people at risk of homelessness, and people at greatest risk of housing instability • All units serving people with mental health and behavioral health disorders, substance abuse disorders earning no more than 50% AMI • Early in planning – considering 4 garden style walkup residential buildings no more than 3 stories, open space, some parking, and a community building with meeting space and office space for service providers, a community room with kitchen, and laundry facilities. • Includes individualized support services to develop self-sufficiency and remove barriers to housing stability. • $2,837,182 in City HOME-ARP: o Rental Housing development funds $2,537,182 o Supportive Services $300,000 • Total development cost: $10,935,000 • Cost per unit: $218,700 • Cost per square foot: $460 • Other proposed funding sources: Oregon Health Authority grant, donations/fundraising, Affordable Housing Trust Funds, SDC exemption, • Applied for LIRHPTE (Council consideration 1/27/25) Attachment C January 27, 2025 Meeting – Item 9 CC Agenda Page 72 -- 74 of 123 -- Aurora West Confluence Development, LLC 1413 Charnelton Street • New construction HOME & HOME-ARP proposal • 115 units: 114 Single Room Occupancy (SROs), 1 SRO manager unit • 108 units targeted to households earning no more than 60% of AMI, 6 units for QP#4 people at greatest risk of housing instability earning no more than 50% AMI • Proposed to serve people enrolled in higher education or vocational programs (not an allowed priority), with set aside units for veterans, youth entering independence from foster care, and people with disabilities. • SROs include bathrooms and basic kitchenettes • Six-story building with lounge and full kitchen on each floor, laundry, study room, recreational room, garden courtyard. • Services include social event coordination and financial education and skill building classes. • $2,585,947 requested in City funds: o HOME funds $1,405,930 o HOME-ARP $863,215 o SDC Assistance $316,802 • Total development cost: $20,519,362 • Cost per unit: $178,429 • Cost per square foot: $435 • Other proposed funding sources: State Low Income Housing tax credits, Private Activity Bonds, • Would apply for LIRHPTE Attachment D January 27, 2025 Meeting – Item 9 CC Agenda Page 73 -- 75 of 123 -- 6th Avenue Cottages Martin Henner 6th Ave west of Blair Blvd • New construction HOME proposal • 10 one-bedroom detached homes • All units serving households earning no more than 60% of AMI • No particular special population would be prioritized. • One-story detached homes include kitchen, living room, bedroom and bathroom and individual outdoor space for gardens. • Detached community building (not shown in site plan below) of similar size planned on 6th Avenue side of property. • No services proposed beyond basic referrals to service agencies; community building would be available for agency staff to use. • $1,080,000 requested in City funds: o HOME funds $1,000,000 o SDC exemption $80,000 • Total development cost: $2,841,456 • Cost per unit: $284,146 • Cost per square foot: $568 • Other proposed funding sources: developer contribution, private bank loan • Would apply for LIRHPTE Attachment E January 27, 2025 Meeting – Item 9 CC Agenda Page 74 -- 76 of 123 -- January 27, 2025 Meeting – Item 10A EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Approval of City Council Minutes Meeting Date: January 27, 2025 Agenda Item Number: 10A Department: Central Services Staff Contact: Natalie Venhuda www.eugene-or.gov Contact Telephone Number: 541-682-8497 ISSUE STATEMENT This is a routine item to approve City Council minutes. BACKGROUND Per City Council Operating Agreements, written minutes shall be taken for all City Council meetings in accordance with the Oregon Attorney General’s Public Records and Meetings Manual. The minutes must give a true reflection of the matters discussed but need not be a full transcript, verbatim or recording. As a matter of courtesy and efficiency a councilor should notify the Mayor and other councilors that they intend to propose an amendment to the minutes and should propose replacement text in advance of the meeting at which those minutes are scheduled to be approved. If the proposed amendment is a simple factual, grammatical, or spelling correction, the amendment may be proposed without consulting the minutes recorder. If the proposed amendment is substantive in nature or seeks to clarify the speaker's intent, the councilor should notify the minutes recorder and request verification of the proposed amendment. SUGGESTED MOTION Move to approve the minutes for the meetings and work sessions on November 20, 2024, November 25, 2024, and December 11, 2024. ATTACHMENTS A. November 20, 2024 Work Session B. November 25, 2024 Meeting C. December 11, 2024 Work Session FOR MORE INFORMATION Staff Contact: Natalie Venhuda, City Council Coordinator Telephone: 541-682-8497 Staff E-Mail: nvenhuda@eugene-or.gov CC Agenda Page 75 -- 77 of 123 -- MINUTES – Eugene City Council Work Session November 20, 2024 Page 1 MINUTES Eugene City Council Work Session Eugene, Oregon 97401 November 20, 2024 12:00 p.m. Councilors Present: Emily Semple, Matt Keating, Alan Zelenka, Jennifer Yeh, Mike Clark, Greg Evans, Lyndsie Leech, and Randy Groves Mayor Vinis opened the November 20, 2024, Eugene City Council Work Session in a virtual format. 1. WORK SESSION: Fire Service Fee City Manager, Sarah Medary, introduced Chief Financial Officer, Twylla Miller, and provided the opportunity for Council to discuss public feedback received from the November 18, 2024 Public Hearing on the Fire Service Fee and consider next steps. Councilor Discussion: ● Councilor Clark – noted the fire department has not received additional funds and that it needs additional resources; noted concern with the proposed fee's transparency; stated the fee might mislead residents into thinking it funds additional fire services rather than sustaining current ones; noted concern with impacting public trust and potentially affecting the Community Safety Payroll Tax (CSPT) in the future; noted interest in a long-term solution to avoid repeated short- term fixes. ● Mayor Vinis – asked for a clarification on the fee's structure and if the funds would be dedicated to fire services and aimed at providing long–term sustainable funding. ● Councilor Semple – asked how the fee fits in with the fire department merger with Springfield; asked if the fee will need to be reevaluated as the cost of living increases; noted support for the stability the fee would provide; noted the need for pragmatic decisions despite initial resistance to taxing for essential services; noted support for the fee, as it is the least regressive option; noted the importance of maintaining fire services and passing the fee. ● Councilor Evans – shared constituent concerns regarding the unified fire service with Springfield and the perception of unequal financial contributions; noted the need to address structural issues with the merger and communicate the fee's purpose clearly to the public. ● Councilor Zelenka – stated that without additional funding the City must make cuts due to the gap in the general fund; noted police and fire services account for 60 percent of the general fund; noted the City is now at the lowest general operating budget per capita in the last eighteen years; noted all departments have made Attachment A January 27, 2025 Meeting – Item 10A CC Agenda Page 76 -- 78 of 123 -- MINUTES – Eugene City Council Work Session November 20, 2024 Page 2 budget cuts; noted the fee is a necessary step to prevent deep cuts to critical services rather than a means to increase them. ● Councilor Keating – noted concern with the fee being proposed as a "fire service fee;” noted support for exploring alternative revenue sources such as a 911 over- user fee, sugary beverage tax, and enforcement of the fireworks ban; asked why the fee does not incorporate charges to owners of vacant homes; noted support for a comprehensive approach combining smaller revenue-generating measures to address the budget shortfall. ● Councilor Groves – asked for clarification on the percentage breakdown of the 60 percent of the general fund allocated to public safety, specifically the portions for fire and police; acknowledged the general fund’s structural issues, magnified by Oregon’s tax system, which doesn’t keep pace with inflation; noted the need for improved communication with the public about the fee; noted support for a motion for a work session to prioritize services; asked how many firefighters per one thousand Eugene residents there are. ● Councilor Yeh – noted support for the benefits of the fee as a pragmatic revenue solution; noted the inefficiency of managing multiple small taxes and supported the simplicity of a single, dedicated fee; acknowledged public confusion of the proposal but emphasized the importance of avoiding severe service cuts; noted support to move the proposal forward or consider additional budget prioritization discussions. ● Councilor Leech – noted the need to avoid devastating cuts to essential services; noted support for further community engagement and prioritization of the budget to help the public understand the tradeoffs involved; noted the inefficiencies and complications of alternative revenue options; noted the fire service fee is a recommended solution that is being implemented across the State in other cities. ● Councilor Clark – asked for the general fund outlay for the current fiscal year; noted support for prioritizing the budget before implementing a new fee; noted concern with the allocation of the proposed $10 million fire service fee as $8 million of current general fund money would be redirected to other uses; noted concern with impacting public trust and jeopardizing the CSPT. ● Councilor Zelenka – noted opposition to priority-based budgeting as it could lead to significant cuts in essential services like libraries, recreation, and cultural programs; noted the inefficiency and high administrative costs of managing multiple small taxes; noted support for the proposed fee as an efficient and scalable solution. ● Councilor Keating – noted the proposed service fee is not optional and is tied to property size; noted more affluent community members can downsize and the average resident would be paying $120 for the same fire services; noted support for exploring alternative revenue sources, such as a surcharge on ticket sales, to support emergency services; noted concern for impacting public trust and the CSPT; noted concern with the fire department not receiving the resources they need with the fee. ● Councilor Groves – noted the need to prioritize essential services within the budget; noted concern with impacting public trust and the CSPT. Attachment A January 27, 2025 Meeting – Item 10A CC Agenda Page 77 -- 79 of 123 -- MINUTES – Eugene City Council Work Session November 20, 2024 Page 3 ● Councilor Semple – noted support for the fire service fee as it is the least regressive option available; noted the fee’s potential to incentivize smaller homes, aligning with sustainability goals; noted limitations of other revenue options due to administrative and institutional barriers; noted support for moving forward with the fee. ● Mayor Vinis – noted the possibility of potential cuts to the Eugene Police Department if the fee does not pass, which could weaken public safety services and hinder future tax renewal efforts, such as the CSPT; noted the importance of Councilors being advocates for the fee if it passes. MOTION: Councilor Groves, seconded by Councilor Clark, moved to direct the City Manager to return to Council on December 11 for a discussion of the City’s financial condition in preparation for a January Council workshop regarding budgeting priorities. Councilor Discussion: ● Councilor Yeh – asked if passing the motion would allow for additional information gathering without removing options from consideration. ● Councilor Zelenka – inquired about revisiting the fee on both December 9 and December 11; noted the importance of addressing the issue before Mayor Vinis’ term ends; noted concern with potential budget cuts if action is delayed; noted opposition to the motion if it precludes the ability to act before year-end. ● Councilor Keating – mentioned a similar situation during his tenure on the Lane Community College Board, where prolonged discussions had a negative impact; noted a preference for option one but opposed unnecessary delays. ● Councilor Clark – noted concern with making the decision without a clear community conversation on priorities as it could lead to petitions to reverse the decision; noted support for the presented motion. ● Councilor Groves – asked if the motion was voted on and passed. ● Mayor Vinis – noted the vote was still pending as Council began discussion; noted preference to pass the fee in 2024 but stated her larger goal is for Councilors to feel confident in their support. ● Councilor Evans – noted support for postponing the decision to ensure a unified Council message and stronger community communication; noted concern with the additional tax burden and the implications for future revenue measures, such as the renewal of the Community Safety Initiative (CSI). ● Councilor Clark – asked for the motion to be restated. VOTE: 5:3 PASSED IN FAVOR: Yeh, Clark, Evans, Groves, and Leech OPPOSED: Semple, Keating, and Zelenka Attachment A January 27, 2025 Meeting – Item 10A CC Agenda Page 78 -- 80 of 123 -- MINUTES – Eugene City Council Work Session November 20, 2024 Page 4 2. WORK SESSION: Community Safety System Impact Evaluation City Manager, Sarah Medary, introduced Community Safety Initiative Manager, Jeremy Cleversey, who provided a Community Safety System impact assessment for services and programs funded by the Community Safety Payroll Tax. Councilor Discussion: ● Mayor Vinis – noted the data and progress in youth engagement, homeless services, and the municipal court is encouraging; highlighted the positive changes for program participants and staff efforts to provide responsive and helpful services. ● Councilor Semple – noted she has long supported the program, crediting it with preventing worse outcomes despite ongoing challenges; noted the need for continued City support, especially for police, fire, and homeless resources. ● Councilor Clark – asked for the number of officers the CSPT hoped to create versus net positions added and current staffing levels. ● Mayor Vinis – noted the stabilizing effect of the payroll tax on staffing levels during challenging times; highlighted the progress made in staffing and its positive impact on public safety. ● Councilor Semple – noted the success of the street safety team in addressing significant issues, including drug-related crimes and illegal cash and weapons; noted the importance of publicizing the program’s results. ● Councilor Clark – noted concern with the public perception of safety; noted the need to maintain funding to protect community programs supported by the payroll tax. ● Councilor Groves – noted concern with property crimes impacting residents and businesses; noted interest in the program reducing these crimes and support for creative and effective solutions to address these issues. Mayor Vinis adjourned the meeting at 1:31 p.m. Respectfully submitted, Katie LaSala City Recorder (Recorded by Natalie Venhuda) Link to the webcast of this City Council meeting here. Attachment A January 27, 2025 Meeting – Item 10A CC Agenda Page 79 -- 81 of 123 -- MINUTES – Eugene City Council Meeting November 25, 2024 MINUTES Eugene City Council Meeting Eugene, Oregon 97401 November 25, 2024 7:30 p.m. Councilors Present: Emily Semple, Matt Keating, Alan Zelenka, Jennifer Yeh, Mike Clark, Greg Evans, Lyndsie Leech, and Randy Groves Mayor Vinis opened the November 25, 2024, meeting of the Eugene City Council in hybrid in-person and virtual format at 500 E. 4th Avenue, Eugene, OR 97401, North Building. 1. COMMITTEE REPORTS AND ITEMS OF INTEREST • Councilor Evans – shared updates from the Intergovernmental Relations Committee regarding legislative priorities and policies and preparation for the upcoming legislative session. • Councilor Yeh – noted she had the opportunity to hear from the co-author of Homelessness is a Housing Problem at two recent events. • Mayor Vinis – stated November is Native American Heritage Month; noted significant dates including tribal restorations in Oregon. 2. CONSENT CALENDAR 1 A. Approval of City Council Minutes • September 23, 2024 Work Session • September 23, 2024 Meeting • September 25, 2024 Work Session • October 16, 2024 Work Session B. Approval of City Council Tentative Agenda MOTION: Councilor Keating, seconded by Councilor Groves, moved to approve the items on Consent Calendar 1. VOTE: 8:0 PASSED IN FAVOR: Semple, Keating, Zelenka, Yeh, Clark, Evans, Leech, and Groves. OPPOSED: None. 3. Action: An Ordinance Extending the Term of Ordinance No. 19775 and Ordinance No. 20397 Granting to Comcast of Oregon, II, Inc. a Franchise for Operation of a Cable Telecommunications System. City Manager, Sarah Medary, introduced the topic and provided background information. MOTION: Councilor Keating, seconded by Councilor Groves, moved to approve An Ordinance Extending the Term of Ordinance No. 19775 and Attachment B CC Agenda Page 80 Page 1 January 27, 2025 Meeting – Item 10A -- 82 of 123 -- MINUTES – Eugene City Council Meeting November 25, 2024 Ordinance No. 20397 Granting to Comcast of Oregon II, Inc. a Franchise for Operation of a Cable Telecommunications System. VOTE: 8:0 PASSED IN FAVOR: Semple, Keating, Zelenka, Yeh, Clark, Evans, Leech, and Groves. OPPOSED: None. 4. Action: An Ordinance Concerning Middle Housing; Making A Text Amendment To The Eugene-Springfield Metropolitan Area General Plan; Replacing Variations Of The Terms “One Family” And “Single Family” With “Single-Unit,” Replacing Variations Of The Term “Two Family” With “Duplex,” Replacing Variations Of The Term “Three Family” With “Triplex,” Replacing Variations Of The Term “Four Family” With “Fourplex,” And Replacing Variations Of The Terms “Multiple Family” And “Multi-Family” With “Multi-Unit” Or “Multiple-Unit” Throughout The Eugene Code; Amending Sections 9.0500, 9.2160, 9.2161, 9.2700, 9.2720, 9.2740, 9.2741, 9.2750, 9.2751, 9.2760, 9.2761, 9.2770, 9.2775, 9.2777, 9.2780, 9.3050, 9.3065, 9.3100, 9.3115, 9.3116, 9.3125, 9.3145, 9.3210, 9.3215, 9.3220, 9.3221, 9.3300, 9.3310, 9.3510, 9.3625, 9.3630, 9.3800, 9.3810, 9.3811, 9.3815, 9.3822, 9.3823, 9.3910, 9.3915, 9.6105, 9.6650, 9.6703, 9.6730, 9.6740, 9.6745, 9.6775, 9.6792, 9.6793, 9.6795, 9.6885, 9.7000, 9.7015, 9.7020, 9.7025, 9.7030, 9.7055, 9.7230, 9.7600, 9.8005, 9.8030, 9.8210, 9.8215, 9.8220, 9.8423, 9.8510, 9.8515, 9.8520, 9.8705, 9.8710, And 9.8865 Of The Eugene Code, 1971; Deleting Sections 9.2705. 9.2735, And 9.2737 Of That Code; Adding Sections 9.5550, 9.7640, 9.7641, 9.7642, 9.7643, 9.7644, 9.7900, 9.7905, 9.7910, 9.7915, 9.7920, 9.7925, 9.8191, 9.8192, 9.8193, 9.8194, 9.8195, 9.8196, 9.8197, 9.8198, And 9.8199 To That Code; Addressing The Oregon Land Use Board Of Appeals’ Remand Of Ordinance No. 20705; And Providing An Effective Date. City Manager, Sarah Medary, introduced the topic and provided background information. MOTION: Councilor Keating, seconded by Councilor Groves, moved to approve an Ordinance Concerning Middle Housing, including Exhibits A and B attached thereto, as set forth in its entirety as Attachment A to the November 25, 2024, Agenda Item Summary. Council Discussion: • Councilor Zelenka – asked how to ensure there is sufficient infrastructure in place for middle housing development; noted implementation details are not typically part of the code; asked how operational details about determining sufficient infrastructure are maintained; asked if the City’s requirements for sufficient infrastructure are the same as the State requirements; asked how the City’s ordinance is different than the State’s minimum standards; noted the functional difference is the City would increase allowable density. • Councilor Groves – asked how many staff hours have been spent on House Bill 2001, Climate-Friendly and Equitable Communities program (CFEC), and related appeals and remands; noted adopting the State model code would have saved considerable time; stated concern the City is behind on other planning related issues like the Bethel area plan or the Health Overlay Zone. Attachment B CC Agenda Page 81 Page 2 January 27, 2025 Meeting – Item 10A -- 83 of 123 -- MINUTES – Eugene City Council Meeting November 25, 2024 • Councilor Clark – stated the need for increased housing; noted the updated code does not provide enough detail around stormwater requirements. • Councilor Evans – asked about the effect of Council not adopting the remand ordinance; stated the importance of maintaining home rule; noted he prefers to vote no or take no action; noted Council had initially opposed the provisions in House Bill 2001 by seven to one; noted concerns about giving our ability to zone and manage our local housing codes to the State. • Councilor Zelenka – noted adopting the minimum State standards is the path Portland chose, as opposed to adopting the proposed ordinance, which was crafted with local input; asked about the benefit of adopting the proposed code versus the State minimum code; stated taking no action means the City would adopt the State code; stated he prefers to adopt a code customized to our city versus a generic State code. • Mayor Vinis – stated Council had included incentives to encourage the creation of affordable housing into the proposed Middle Housing code; stated the current criteria for determining sufficient infrastructure for construction has been effective and consistent for years; noted the City had received an award for the extent of public engagement around the creation of the Middle Housing code and to propose changes now would erode public trust. VOTE: 5:3 PASSED IN FAVOR: Semple, Keating, Zelenka, Yeh, and Leech. OPPOSED: Clark, Evans, and Groves. 5. Possible Action: Appointment to the Civilian Review Board City Manager, Sarah Medary, introduced the topic and provided background information. MOTION: Councilor Keating, seconded by Councilor Groves, moved to appoint Noah Coon to the Civilian Review Board beginning November 26, 2024, to fill an unexpired term ending on June 30, 2025. VOTE: 8:0 PASSED IN FAVOR: Semple, Keating, Zelenka, Yeh, Clark, Evans, Leech, and Groves. OPPOSED: None. 6. PUBLIC COMMENT 1. Lin Woodrich – spoke against the proposed USD Clean Fuels facility and in favor of a public health overlay zone. 2. Jess Ludwig – spoke in favor of increasing the gas supplier tax. 3. KG – spoke in favor of equitable access to plant medicines. 4. Mica Anton – spoke in favor of increasing the gas supplier tax. 5. Tiffany Edwards – spoke about the need to clarify the proposed fire fee. 6. Dawn Scott – spoke about issues with the planned Golden Gardens Park. 7. Josh Easterlund – spoke in favor of decriminalizing psylocibin. 8. Brett Deedon – spoke about the value and the struggles of the fire department. 9. Gino Polvorosa – spoke in favor of increasing the gas supplier tax. Attachment B CC Agenda Page 82 Page 3 January 27, 2025 Meeting – Item 10A -- 84 of 123 -- MINUTES – Eugene City Council Meeting November 25, 2024 10. Jim Neu – spoke in favor of increasing the gas supplier tax and increasing electrification. 11. Virginia Donohue – spoke in favor of investing in the fire department. 12. Andrew Highison – spoke in favor of investing in the fire department. 13. Tim Rodgers – spoke in favor of investing in the fire department. 14. John Williams – spoke in favor of decriminalizing psylocibin. 15. Robert W. Baker III – spoke in favor of passing middle housing. 16. Stefan Strek – spoke in favor of investing in the fire department. 17. Linda Kelley – spoke in favor of increasing the gas supplier tax and increasing electrification. 18. Molly Babcock – spoke in favor of increasing the gas supplier tax. 19. Kris Siewert – spoke in favor of investing in the fire department. 20. David Igl – spoke about local historical events. 21. Robin Bloomgarden – spoke about challenges faced by the Bethel area. Council Discussion: • Councilor Keating – expressed his gratitude to everyone who participated in public comment, his family, colleagues, constituents, city staff, and first responders for their service and dedication. • Mayor Vinis – stated the proposed fire fee would create a dedicated fund to support the fire department. Mayor Vinis adjourned the meeting at 9:07 p.m. Respectfully submitted, Katie LaSala City Recorder (Recorded by Cherish Bradshaw) Link to the webcast of this City Council meeting here. Attachment B CC Agenda Page 83 Page 4 January 27, 2025 Meeting – Item 10A -- 85 of 123 -- MINUTES – Eugene City Council Work Session December 11, 2024 Page 1 MINUTES Eugene City Council Work Session Eugene, Oregon 97401 December 11, 2024 12:00 p.m. Councilors Present: Emily Semple, Matt Keating, Alan Zelenka, Jennifer Yeh, Mike Clark, Greg Evans, Lyndsie Leech, and Randy Groves Mayor Vinis opened the December 11, 2024, Eugene City Council Work Session in a virtual format. 1. WORK SESSION: Financial Condition Update City Manager, Sarah Medary, introduced Chief Financial Officer, Twylla Miller, and provided a financial condition update in advance of the January City Council workshop on budget priorities. Councilor Discussion: ● Mayor Vinis – noted the forecast is somber and valuable for constituents tuning in. ● Councilor Clark – asked for clarification on expenditure allocations, specifically for categories like Public Works, Eugene Police Department (EPD), and the Community Safety Initiative (CSI); asked what category the Human Services Commission is in; noted the need for a more granular, priority–based budgeting discussion to guide decisions on service levels in general fund areas. ● Councilor Semple – noted concern for the future of shelters funded by one-time dollars; asked for the plan for the shelters, particularly the Garfield shelter; noted interest in the City finding a way to maintain the critical number of beds, which have increased capacity from 500 to 1,000; noted the importance of retaining neighborhood officers and other essential services despite the challenging budget environment. ● Councilor Keating – noted concern over potential cuts to animal services and support for their continuation; noted interest in rebranding the fire service fee as a "fire and budget stabilization fee" to reflect its broader purpose; asked about potential early separation incentives for employees to reduce financial pressures of tier one rates; asked if the City is at risk of violating intergovernmental agreements with Lane County if Human Services contributions are reduced. ● Councilor Groves – noted the challenging financial outlook and the need for a prioritization discussion, regardless of whether the fire service fee is implemented; noted constraints of Oregon’s taxation system and the City’s revenue stream’s inability to keep pace with inflation and costs; noted concerns with safe sleep sites and the potential impact of turning unhoused individuals back to the streets; noted Attachment C January 27, 2025 Meeting – Item 10A CC Agenda Page 84 -- 86 of 123 -- MINUTES – Eugene City Council Work Session December 11, 2024 Page 2 the importance of neighborhood services officers and improvements in responsiveness to community issues; noted support for a more granular look at the budget. ● Councilor Zelenka – noted the general fund dollars per capita is lower than it was in 2008, the full-time equivalent (FTE) per capita is the lowest it’s been in 18 years, and there have been $60 million in general fund cuts over the past 15 years; asked if the general fund is zero-sum; noted without new revenue options, prioritizing EPD and Eugene-Springfield Fire (ESF) would require cuts to other departments, such as libraries, parks, and planning; asked if the one-time funding for the Human Services Commission (HSC) was part of the budget; noted HSC, safe sleep sites, neighborhood services, and animal services are all at risk without additional funding. ● Councilor Leech – noted community feedback has suggested finding efficiency measures; stated the inability for the City to cut $10 million without significantly impacting services; noted the importance of preventative measures, such as safe sleep sites and libraries, to avoid escalating challenges and promote future budget savings; noted interest in reviewing a higher budget proposal; noted the importance of aligning budget priorities with community values. ● Councilor Yeh – noted support for reviewing both proposed budget levels to understand the differences and implications for addressing funding gaps; noted the difficulty of prioritization but emphasized its necessity; noted a desire for transparent and open conversations with the community about how City dollars are allocated and the importance of City programs. ● Councilor Zelenka – asked if the next level of cuts will impact service to the public; noted interest in reviewing a higher budget proposal. ● Councilor Groves – noted EPD, ESF, and Central Services should be viewed separately; noted fire services has not grown in over 40 years, while the police department has also faced shortages; noted opposition to across–the–board cuts for fire services and interest in exploring alternatives, such as establishing a fire district with its own elected board. ● Councilor Clark – noted support for differentiating fire and police in budget discussions but opposed creating a special fire district; asked about the potential for statewide changes to Public Employees Retirement System (PERS) and their impact on local budgets; noted the State’s funding is based on income tax and the City’s is based on property tax; asked about State revenue projections versus local property tax-based projections and whether the legislature might address these differences; noted the need to consider long-term revenue and cost implications. ● Mayor Vinis – noted Council needs to consider the immediate budget decisions and longer-term projections, including potential legislative changes; noted the importance of creating a sustainable funding structure and the potential implications of failing to address current budget shortfalls; noted budget gaps are likely to increase over time as there will be an increasing demand for services as the community grows. Attachment C January 27, 2025 Meeting – Item 10A CC Agenda Page 85 -- 87 of 123 -- MINUTES – Eugene City Council Work Session December 11, 2024 Page 3 2. WORK SESSION: City Manager Update City Manager, Sarah Medary, provided information on future agenda items and updates on City projects. Councilor Discussion: ● Councilor Semple – noted gratitude for Council and staff. ● Mayor Vinis – noted appreciation for Council and staff; noted the learning opportunities from the Council’s questions and insights; stated appreciation for the devotion of Councilors to their work and constituents. Mayor Vinis adjourned the meeting at 1:08 p.m. Respectfully submitted, Katie LaSala City Recorder (Recorded by Natalie Venhuda) Link to the webcast of this City Council meeting here. Attachment C January 27, 2025 Meeting – Item 10A CC Agenda Page 86 -- 88 of 123 -- January 27, 2025 Meeting – Item 10B EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Approval of Tentative Working Agenda Meeting Date: January 27, 2025 Agenda Item Number: 10B Department: Central Services Staff Contact: Katie LaSala www.eugene-or.gov Contact Telephone Number: 541-682-5010 ISSUE STATEMENT This is a routine item to approve the City Council Tentative Working Agenda. BACKGROUND Per City Council Operating Agreements, at each regular meeting of the Council, the City Manager shall present the Tentative Agenda. This shall be placed on the Consent Calendar. If there are any concerns about the items on the Tentative Agenda, it may be removed at the request of any councilors from the Consent Calendar and discussed separately. COUNCIL OPTIONS The council may choose to approve, amend or not approve the tentative agenda. SUGGESTED MOTION Move to approve the items on the Tentative Working Agenda. ATTACHMENTS A. City Council Tentative Working Agenda FOR MORE INFORMATION Staff Contact: Katie LaSala, City Recorder Telephone: 541-682-5010 Staff E-Mail: klasala@eugene-or.gov CC Agenda Page 87 -- 89 of 123 -- Work Session Action Public Hearing Public Comment Consent Calendar Committee Reports/Items of Interest Ceremonial Matters Pledge of Allegiance Updated January 24, 2025 Materials and information about how to access meetings available at https://www.eugene-or.gov/3360/Webcasts-and-Meeting-Materials January 2025 Date Day Time Title Length Dept Contact 27-Jan Mon 5:30 pm Executive Session - ORS 192.660(2)(f) (Exempt Public Records, ORS 192.355(1) (Internal Advisory Communications) and ORS 192.355(2) (Personal Privacy Exemption)) and ORS 192.660(2)(a) (Employment of Public Officers, Employees, and Agents) (Executive Session) Land Use Code Amendment for Stormwater Development Standards to Implement NPDES Permit Requirements (Work Session) 45 min Doug Singer, PW Expected Absence: Groves Work Session Location: City Hall Council Chambers and Virtual 27-Jan Mon 7:30 pm Election of Council Officers Ceremonial Matters Committee Reports and Items of Interest 2025 Low-Income Rental Housing Property Tax Exemptions (Priority Goal Action) Approval of Funds for Affordable Housing (Priority Goal Action) Appointment to Metropolitan Wastewater Management Commission (Consent Calendar 1) Resolution acknowledging receipt of the ACFR for the COE (Action) Resolution acknowledging receipt of the annual financial report for the URA (Action) Public Comment Natalie Venhuda, CS Laura Hammond, PDD Ellen Meyi-Galloway, PDD Michelle Miranda, PW Brett Gomsrud, CS Brett Gomsrud, CS Expected Absence: Groves Meeting Location: City Hall Council Chambers and Virtual Attachment A January 27, 2025 Meeting – Item 10B CC Agenda Page 88 -- 90 of 123 -- 2 29-Jan Wed 12:00 pm Eugene City Council position on HB 2967 and Bills Repealing HB 3115 (Work Session) City Manager Update (Work Session) 45 min 45 min Ethan Nelson, CS Sarah Medary, CMO Expected Absence: Groves Work Session Location: Virtual Only February 2025 Date Day Time Title Length Dept Contact 10-Feb Mon 5:00 pm Council Budget Priorities Workshop, Part 2 (Work Session and Possible Action) 2 hrs Sarah Medary, CMO Twylla Miller, CS Work Session Location: City Hall Council Chambers and Virtual 10-Feb Mon 7:30 pm Ceremonial Matters Committee Reports and Items of Interest Consent Calendar 1 Annual Withdrawal of Annexed Properties from Special Districts (Possible Action) Sheppard Motors Plan Amendments and Zone Change (Possible Action) Ordinance Amending EC 6.552 to conform to DEQ Industrial Pretreatment Regulations (Possible Action) Enterprise Zone program update (Action) Public Comment Shawn Burgett, PDD Shawn Burgett, PDD Tanya Haeri- Mccarroll, PW Michael Bradley, PDD Meeting Location: City Hall Council Chambers and Virtual 12-Feb Wed 12:00 pm Urban Growth Strategies Update (Work Session) 90 min Staff, PDD Work Session Location: Virtual Only 12-Feb Wed 5:30 pm Budget Committee Meeting: Capital Improvement Program & Other Financial Topics (Budget Committee) Budget Committee Location: City Hall Council Chambers and Virtual 18-Feb Tues 5:30 pm An Ordinance Concerning State Traffic Laws (Public Hearing) An Ordinance Concerning Stormwater Management Facilities; Amending Sections 7.010 And 7.143 Of The Eugene Code, 1971; And Providing An Effective Date. (Public Hearing) Travis Smith, CPO Doug Singer, PW Attachment A January 27, 2025 Meeting – Item 10B CC Agenda Page 89 -- 91 of 123 -- 3 An Ordinance Concerning Stormwater Management; Amending Sections 9.6791, 9.6792, 9.6793, And 9.8030 Of The Eugene Code, 1971; And Providing An Effective Date. (Public Hearing) Safe parking/tent sunset extension (Public Hearing) Doug Singer, PW Regan Watjus, PDD Public Hearing Location: City Hall Council Chambers and Virtual 19-Feb Wed 12:00 pm Downtown Riverfront Update (Urban Renewal Agency Work Session) 90 min Will Dowdy, PDD Work Session Location: Virtual Only 24-Feb Mon 5:30 pm Urgent Community Needs: Downtown & Public Spaces Update (Strategic Workshop) 90 min Staff, EPD Michelle Parkins, PW Work Session Location: City Hall Council Chambers and Virtual 24-Feb Mon 7:30 pm Committee Reports and Items of Interest Consent Calendar 1 Right of Way Jurisdictional Transfer Requests (Consent Calendar 2) Safe parking/tent sunset extension (Possible Action) Public Comment Jenifer Willer, PW Regan Watjus, PDD Meeting Location: City Hall Council Chambers and Virtual 26-Feb Wed 12:00 pm Charter Follow-up Discussion (Work Session) Topic Pending Confirmation (Work Session) 45 min 45 min Jason Dedrick, CS Staff Work Session Location: Virtual Only March 2025 Date Day Time Title Length Dept Contact 10-Mar Mon 5:30 pm MUPTE Applications – Riverfront Parcels 9 and 10, and Station House (Work Session and Possible Action) 90 min Dylan Huber-Heidorn, PDD Work Session Location: City Hall Council Chambers and Virtual 10-Mar Mon 7:30 pm Ceremonial Matters Committee Reports and Items of Interest Consent Calendar 1 2025-2031 Capital Improvement Program (Public Hearing and Action) Twylla Miller, CS Attachment A January 27, 2025 Meeting – Item 10B CC Agenda Page 90 -- 92 of 123 -- 4 An Ordinance Concerning Stormwater Management Facilities; Amending Sections 7.010 And 7.143 Of The Eugene Code, 1971; And Providing An Effective Date. (Public Hearing) An Ordinance Concerning Stormwater Management; Amending Sections 9.6791, 9.6792, 9.6793, And 9.8030 Of The Eugene Code, 1971; And Providing An Effective Date. (Public Hearing) Public Comment Doug Singer, PW Doug Singer, PW Meeting Location: City Hall Council Chambers and Virtual 12-Mar Wed 12:00 pm Topic Pending Confirmation (Work Session) Topic Pending Confirmation (Work Session) 45 min 45 min Staff Staff Work Session Location: Virtual Only Note: Council Spring Break March 13 - April 8 UPCOMING PUBLIC HEARINGS Date/Time Topic/Title Description Staff Contact Tues. Feb 18, 5:30pm Safe Parking/Tent Sunset Extension The City Council will hold a public hearing to consider an ordinance extending the sunset date for the Safe Parking and Safe Tent Sites Ordinance through June 30, 2026. This public hearing will provide opportunity for public comment on the potential sunset date extension. The proposed ordinance will be posted online with information on how to provide testimony: https://www.eugene-or.gov/1781/Proposed- Ordinances Regan Watjus, PDD RWatjus@eugene-or.gov 541-681-8442 Tues. Feb 18, 5:30pm An Ordinance Concerning State Traffic Laws The City Council will hold a public hearing to consider an ordinance concerning state traffic laws. The proposed ordinance will be posted online with information on how to provide testimony: https://www.eugene- or.gov/1781/Proposed-Ordinances Travis Smith, CPO tsmith@eugene-or.gov Tues. Feb 18, 5:30pm An Ordinance Concerning Stormwater Management Facilities; Amending Sections 7.010 And 7.143 Of The Eugene Code, 1971; And Providing An Effective Date The City Council will hold a public hearing to consider an ordinance to amend the standards for stormwater management facilities for public improvements in the public way. This public hearing will provide opportunity for public comment on the proposed amendments. The proposed ordinance will be posted online with information on how to provide testimony: https://www.eugene-or.gov/1781/Proposed- Ordinances Doug Singer, PW DSinger@eugene-or.gov 541-682-8460 Tues. Feb 18, An Ordinance Concerning The City Council will hold a public hearing to consider an ordinance to amend the land use Doug Singer, PW DSinger@eugene-or.gov Attachment A January 27, 2025 Meeting – Item 10B CC Agenda Page 91 -- 93 of 123 -- 5 5:30pm Stormwater Management; Amending Sections 9.6791, 9.6792, 9.6793, And 9.8030 Of The Eugene Code, 1971; And Providing An Effective Date. code related to stormwater development standards. This public hearing will provide opportunity for public comment on the proposed amendments. The proposed ordinance will be posted online with information on how to provide testimony: https://www.eugene- or.gov/1781/Proposed-Ordinances 541-682-8460 Approved Work Session Polls to be Scheduled Councilor Date Approved Gas Stations – Oct 18, 2023; follow-up work session - TBD Keating 4/15/22 USD Clean Fuels Transloading Project - TBD Leech 11/1/24 Shopping Carts in Parks and Scrap Metal Sales Requirements - TBD Groves 11/6/24 Attachment A January 27, 2025 Meeting – Item 10B CC Agenda Page 92 -- 94 of 123 -- January 27, 2025 Meeting – Item 10C EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Appointment to the Metropolitan Wastewater Management Commission Meeting Date: January 27, 2025 Agenda Item Number: 10C Department: Public Works Staff Contact: Michelle Miranda www.eugene-or.gov Contact Telephone Number: 541-682-8615 ISSUE STATEMENT This is an action item to appoint a member to the Metropolitan Wastewater Management Commission (MWMC). BACKGROUND The Metropolitan Wastewater Management Commission is an intergovernmental partnership of the City of Eugene, City of Springfield, and Lane County to provide regional wastewater collection and treatment services for about 280,000 community members in the metropolitan region. The governing body for the Metropolitan Wastewater Management Commission is comprised of seven members, including two from the City of Springfield, two from Lane County, and three from the City of Eugene. Of the seven members, each agency has one elected-official member (Councilor Yeh is the current elected representative for Eugene). The remaining four members are appointed to the Metropolitan Wastewater Management Commission and are referred to as citizen representatives or citizen members. Eugene’s Citizen members are nominated by the Mayor and appointed by the Council. The citizen members serve for three-year terms and/or at the pleasure of the governing body appointing that member and may serve for as many terms as determined by the governing body. Citizen member Christopher Hazen’s current term of service will end on June 25, 2025. This appointment will fulfill the term of a Eugene Citizen Representative spot on the MWMC for the next 3 years in accordance with the MWMC Bylaws. The MWMC opened the application process for two weeks beginning on November 19, 2024. Staff received one application, from incumbent Christopher Hazen. Staff made a recommendation to Mayor Knudson to reappoint Christopher Hazen. Mayor Knudson nominated Christopher Hazen to serve as a Eugene citizen representative on the Metropolitan Wastewater Management Commission. RELATED CITY POLICIES The City of Eugene Strategic Plan outlines direction and organizational priorities for the 2023-2026 period. The strategic plan identifies four key focus areas: Urgent Community Needs, Culture of Belonging, Communication and Outreach, and Organizational Wellbeing. CC Agenda Page 93 -- 95 of 123 -- January 27, 2025 Meeting – Item 10C This recruitment process aligns with the Culture of Belonging focus area strategic goal: Strengthen relationships with the whole community, with emphasis on the inclusion of the most marginalized groups. High Impact Action: Increase engagement efforts with people from the most marginalized groups to increase participation from these groups on boards, commissions, panels, and other City-sponsored entities. PREVIOUS COUNCIL DIRECTION None. COUNCIL OPTIONS 1. Appoint the applicant nominated by Mayor Knudson. 2. Seek additional candidates for the position. SUGGESTED MOTION Move to appoint Christopher Hazen to the Metropolitan Wastewater Management Commission beginning February 1, 2025 and ending January 31, 2028. ATTACHMENTS A. Bylaws of the Metropolitan Wastewater Management Commission. B. Sent Under Separate Cover FOR MORE INFORMATION Staff Contact: Michelle Miranda, Public Works Wastewater Division Director Telephone: 541-682-8615 Staff E-Mail: MMiranda@eugene-or.gov CC Agenda Page 94 -- 96 of 123 -- 1 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 BYLAWS OF THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION ARTICLE 1. Establishment The Metropolitan Wastewater Management Commission has been officially established through the authority of the Metropolitan Wastewater Management Commission Agreement, dated February 9, 1977, signed by the governing bodies of Eugene, Springfield, and Lane County. ARTICLE II. Purposes and Objectives The purposes and objectives of this Commission shall be to provide sewerage on a unified basis for the projected Eugene-Springfield metropolitan area. The Commission may take any action necessary or convenient to perform its functions and duties as specified in the establishing agreement. The Commission’s responsibility as set forth in the establishing agreement includes, but is not necessarily limited to, the following: (a) To construct, operate, and maintain regional sewerage facilities as described in Appendix “A” of the establishing agreement; (b) To recommend the boundaries of a county service district to the Lane County Commissioners; (c) To compensate Springfield and Eugene for existing sewerage facilities as defined in Appendix “A” of the establishing agreement; (d) To salvage abandoned sewerage facilities; (e) To implement a financing plan, based on the financing criteria described in Appendix “B” of the establishing agreement, an annual budget, and an annual financial statement for regional sewerage facilities; (f) To adopt a schedule of sewer service charges and connection charges for regional sewer services; (g) To establish billing and collection systems, if necessary, in locations where such systems are not provided by others; (h) To contract with Eugene, Springfield, and Lane County for operation and maintenance of the regional sewerage facilities and for other services as necessary; (i) To contract for consultant services; Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 95 -- 97 of 123 -- 2 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 (j) To provide service only to Eugene, Springfield, and Lane County; (k) To comply with State and Federal standards; (l) To adopt minimum uniform standards for pretreatment requirements for industrial and other wastes as necessary; (m) To adopt minimum standards for construction and maintenance of local sewage collection systems; and (n) To plan and make recommendations to Eugene, Springfield, and Lane County for expansion and improvement of regional sewerage facilities. ARTICLE III. Membership and Voting Section 1. The Commission shall consist of seven voting members. Section 2. Each of the governing bodies shall appoint to the Commission one elected official of the governing body. Section 3. The City Council of Eugene shall appoint two additional members to the Commission. The City Council of Springfield and the Lane County Commissioners shall each appoint one additional member to the Commission. Section 4. Members of the Commission shall serve for three-year terms and/or at the pleasure of the governing body appointing that member. Commission members may serve for as many terms as determined by the governing body. Section 5. Notwithstanding the terms of office specified, the members first appointed to the Commission shall serve for terms as determined by the following: (a) The elected officials who are appointed to the Commission shall serve for terms determined as follows: (1) Eugene’s representative shall serve for a term ending on February 1, 1978. (2) Springfield’s representative shall serve for a term ending on February 1, 1979. (3) Lane County’s representative shall serve for a term ending on February 1, 1980. (b) The remaining Commission members shall serve for terms determined by the following: Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 96 -- 98 of 123 -- 3 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 (1) Lane County’s representative shall serve for a term ending on February 1, 1978. (2) One Eugene representative, as designated by the Eugene City Council, shall serve for a term ending on February 1, 1979. (3) Springfield’s representative and Eugene’s remaining representative shall serve for a term ending on February 1, l980. ARTICLE IV. Meetings of the Commission Section 1. Regular meetings of the Commission shall be held at least monthly in a location and at a time specified in advance of said meetings. Regular meetings may be held more frequently, as necessary. Section 2. Special meetings of the Commission may be called by the President of the Commission. Notice of any special meeting of the Commission, setting forth the time, location and purpose thereof, shall be given at least twenty-four hours prior thereto by personal contact or by mail to each member. Section 3. Five members of the Commission shall constitute a quorum, provided that at least one member appointed by each governing body is present. Decisions of the Commission shall require a majority vote of the entire membership unless otherwise provided in the establishing agreement or these bylaws. Section 4. Each member shall be entitled to one vote on all issues presented at meetings at which the member is present. Section 5. Commission members shall be entitled to vote through any designated alternate, but not by proxy. Section 6. All meetings shall be conducted in accordance with “Robert’s Rules of Order.” Section 7. Members may attend meetings and cast votes via telephone or similar communications equipment, provided that arrangements are made to enable all persons participating in the meeting to hear each other and that allow the public to listen to all communications made over the telephone when required by law. ARTICLE V. Officers and Duties Section 1. The members of the Commission shall elect a President, who shall preside at all meetings, and a Vice-President, who shall perform the duties of the President in the latter’s absence. Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 97 -- 99 of 123 -- 4 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 Section 2. The officers, with the exception of those first elected, shall be elected annually at the first meeting in March. Section 3. A member of the Commission’s staff shall attend all meetings, keep minutes of the meetings, and be the custodian of the Commission records. Section 4. The Commission will adopt all administrative rules and policy statements through a formal resolution process. ARTICLE VI. Hearings Procedure and Notice Requirements Section 1. The Commission is adopting procedures and notice requirements governing the conduct of hearings pursuant for complaints from property owners who are aggrieved (hereinafter “Appellant”) by any of the following: (a) Rule of the Commission; (b) Sewerage rules, regulations, policies, or practices of Eugene, Springfield, or Lane County; and (c) Any aspect of the sewerage operations of Eugene, Springfield, or Lane County. The procedures are intended to promote a hearing process that is simple, efficient, and expeditious for all parties. The Commission encourages informal resolution of complaints. The Commission, the Commission’s Executive Officer, or a designee of the Commission’s Executive Officer may appoint a hearings official to conduct hearings and report recommended findings and conclusions to the Commission. Section 2. A Request for Hearing must be submitted to the Commission as follows: (a) A Request for Hearing in the form attached hereto as Attachment 1, or as specified by the Commission’s Executive Officer or a designee of the Commission’s Executive Officer, must be completed and signed by Appellant; (b) A copy of the decision being appealed must be included with the Request for Hearing; or, if applicable, a concise description of the rule, regulation, policy, practice, or aspect of sewerage operation that Appellant is aggrieved by must be included with the Request for Hearing; (c) If oral argument before the Commission or hearings official is desired by Appellant, it must be requested at time of filing or it will be waived, unless requested by either the Commission or any other party; Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 98 -- 100 of 123 -- 5 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 (d) Failure to file the Request for Hearing with all required information may result in dismissal; (e) A hearing date will be set by the Commission’s Executive Officer, a designee of the Commission’s Executive Officer, or the hearings official if one is appointed. Unless otherwise mutually agreed to by all parties and approved by the Commission’s Executive Officer, a designee of the Commission’s Executive Officer, or the hearings official, the hearing date will generally be within 60 days of the date of filing the Request for Hearing; (f) The Request for Hearing and all required information must be filed (received by the Commission at its office at 225 Fifth Street, Springfield, OR 97477) no later than 5:00 p.m. on the last day set for appeal by any applicable provisions of the Eugene Code, Springfield Code, or Lane County Code; and (g) The Commission’s Executive Officer, a designee of the Commission’s Executive Officer, or the hearings official if one is appointed shall generally provide at least 15 days prior written notice of the hearing to each party and such notice shall include whether the hearing will be before a hearings official or the Commission. Section 3. Written submissions to the Commission or hearings official shall comply with the following: (a) Appellant’s initial brief, and any documentary evidence, must be filed within 14 days of the date Appellant filed the Request for Hearing; (b) Respondent’s brief (including a request for oral argument), if any, and any documentary evidence, must be filed within 14 days of the date Appellant’s brief was filed; (c) Appellant’s reply brief, if any, must be filed within 7 days of the date that Respondent’s brief was filed; (d) Copies of all briefs must be served on all other parties on the day of filing; and (e) Brief length may be limited by the Commission’s Executive Officer, a designee of the Commission’s Executive Officer, or the hearings official. Section 4. Oral argument, if requested, shall be conducted by the Commission or the hearings official as follows: (a) Appellant may first present oral argument; Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 99 -- 101 of 123 -- 6 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 (b) Respondent may present oral argument; (c) Appellant may rebut Respondent’s oral argument; (d) Oral argument may be limited by the Commission or the hearings official; (e) The hearing shall be an informal hearing: the rules of evidence shall not apply, and neither witnesses nor cross-examination of other parties shall be allowed unless ordered by the Commission, the Commission’s Executive Officer, a designee of the Commission’s Executive Officer, or the hearings official; and (f) The hearing may be adjourned from time to time by the Commission or the hearings official if necessary. Section 5. (a) The Commission or the hearings official may make summary determination on all or part of the appeal at any time; (b) The Commission shall issue a written decision. The decision shall generally be issued within the time set by any applicable provisions of the Eugene Code, Springfield Code, or Lane County Code; (c) The Commission or the hearings official may decide that the Commission has no basis to make the requested determination or make a recommendation; (d) The Commission, the Commission’s Executive Officer or the hearings official may dismiss the Appellant’s Request for Hearing for failure to comply with these procedures; and (e) The Commission, the Commission’s Executive Officer or the hearings official may modify any of the above procedures for good cause shown or when the interests of justice so require. ARTICLE VII. Budgetary Procedures As soon as practicable, the Commission shall adopt within these bylaws procedures and standards for governing the preparation of an annual and supplemental budgets. ARTICLE VIII. Central Office The central office for the Commission is designated as follows: Metropolitan Wastewater Management Commission 225 Fifth Street Springfield, OR 97477 Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 100 -- 102 of 123 -- 7 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 ARTICLE IX. Amendments to Bylaws These bylaws may be amended or repealed or new bylaws may be adopted by a majority vote of the Commission members. Written notice of proposed amendments and the nature thereof shall have been given to the membership of the Commission at least seven days prior to the date of the meeting at which the amendments are to be considered. Attachment 1: “Request for Hearing” Form Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 101 -- 103 of 123 -- 8 Restated MWMC Bylaws As amended March 16, 1995 Approved by Commission March 9, 2009 REQUEST FOR HEARING BEFORE THE METROPOLITAN WASTEWATER MANAGEMENT COMMISSION Name of Appellant: ___________________________________________________________ Street Address: ______________________________________________________________ City, State, ZIP: ______________________________________________________________ Telephone Number: ___________________________________________________________ Discharge Permit Number (if applicable): ___________________________________________ Date of Adverse Decision (if applicable): ___________________________________________ Description of adverse decision or, if applicable, a concise description of the rule, regulation policy, practice or aspect of sewerage operation that Appellant is aggrieved by: ____________________________________________________________________________ Brief description of the facts and arguments supporting the Request for Hearing: If Appellant will be represented by an attorney, provide attorney’s: Name: ______________________________________________________________________ Street Address: _______________________________________________________________ City, State, ZIP: _______________________________________________________________ Telephone Number: ____________________________________________________________ Attach copy of adverse decision and other documentation supporting the Request for Hearing. ___________________________________ ___________________________ Signature of Appellant Date ATTACHMENT 1 Attachment A January 27, 2025 Meeting – Item 10C CC Agenda Page 102 -- 104 of 123 -- January 27, 2025 Meeting – Item 11 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Action: Resolution Acknowledging Receipt of City of Eugene, Annual Comprehensive Financial Report for the Fiscal Year Ended June 30, 2024 Meeting Date: January 27, 2025 Agenda Item Number: 11 Department: Central Services - Finance Staff Contact: Brett Gomsrud www.eugene-or.gov Contact Telephone Number: 541-682-5024 ISSUE STATEMENT This is a resolution acknowledging receipt of the City of Eugene, Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2024. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the City’s ACFR, containing a signed expression of opinion, be furnished to each member of the governing body. The resolution is included as Attachment A. BACKGROUND Under Oregon Municipal Audit Law, the City is required each fiscal year to contract with an authorized accounting firm for the audit of its accounts and fiscal affairs (ORS 297.425). The firm of Moss Adams (auditors) has completed the audit of the City of Eugene's financial statements for the fiscal year ended June 30, 2024 and issued an unmodified opinion (also known as a "clean opinion") on the basic financial statements. A complete copy of the Fiscal Year 2024 (FY24) Report can be found on the City’s Financial Reports website. One of the most important components of the ACFR is the audit opinion. The auditors have issued two audit reports which can be found on pages 9-12 and pages 157-158 of the ACFR. In the first report, the auditors have issued an unmodified opinion on the City's basic financial statements, indicating that the City has prepared these statements in conformity with generally accepted accounting principles (GAAP). GAAP for state and local governments is promulgated by the Governmental Accounting Standards Board to ensure consistency in accounting and comparability in financial reporting among state and local governments. A clean opinion is a fundamental financial goal for every government, as it represents the highest level of opinion a government can receive from its independent auditors. A clean opinion is an important indicator of sound financial management and creditworthiness to the citizens, other governmental jurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, and other private sector entities. For policy makers, a clean opinion means that the information in the ACFR is accurate and reliable. In the second report, the auditors address the City’s compliance with applicable provisions of Oregon Revised Statutes including requirements related to debt, deposit of public funds, preparation and adoption of the budget, accounting records and the related internal control CC Agenda Page 104 -- 105 of 123 -- January 27, 2025 Meeting – Item 11 structure, etc. The auditors noted that they identified no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The auditors conduct the audit of the City's basic financial statements in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations. In addition, as a recipient of federal grants, the City is subject to the Federal Single Audit Act of 1984, which requires that the audit be conducted in accordance with Government Auditing Standards, issued by the Comptroller General of the United States and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). These standards and the Uniform Guidance require that the auditors plan and perform the audit to obtain reasonable assurance about whether the basic financial statements are free of material misstatement and whether the City complied with the laws and regulations pertaining to federally-funded programs. In addition to state and federal requirements, the City has a contractual obligation in connection with its debt issuances which requires that the City issue annual audited financial statements. Two additional reports, beginning on page 159, specifically address compliance with Federal laws, regulations, contracts and grants, and indicate that the auditors found no material instances of the City's noncompliance with these requirements, nor were there any findings or questioned costs noted in relation to Federal awards made to the City. Management is responsible for the information contained in, and the preparation of, the City's financial statements. To effectively fulfill this responsibility and to contain the cost of auditor services, City staff devotes significant effort to the closing of accounting records, the preparation of schedules and audit workpapers, and the production of the ACFR. This also results in staff expertise being developed on specific financial and service issues that can then be used to assist departments and other pertinent parties. Professional requirements mandate auditors provide a report to the governing body that addresses any concerns or findings they encountered in such audit-related issues as significant audit findings, accounting estimates and disagreements with management. Moss Adams’ memo addressing these issues for fiscal year 2024 is included as Attachment B. Moss Adams recommends that City management implement a control to ensure new leases are reported as lease issuances in the Governmental funds. Staff will evaluate to understand the accounting impacts of this newer requirement and will ensure this approach is followed in future audit cycles. The Government Finance Officers Association of the United States and Canada (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Eugene for its Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2023. This was the 48th consecutive year that the City has achieved this prestigious award. To be awarded a Certificate of Achievement, a government must publish an easily readable and efficiently organized ACFR, which satisfies both generally accepted accounting principles and applicable legal requirements. In addition, the requirements for the certificate provide much of the information needed for the City’s credit assessments. CC Agenda Page 105 -- 106 of 123 -- January 27, 2025 Meeting – Item 11 PREVIOUS COUNCIL DIRECTION None. COUNCIL OPTIONS Council has the option to accept the ACFR and audit opinions or not accept the ACFR and audit opinions. . CITY MANAGER’S RECOMMENDATION The City Manager recommends adoption of the Resolution. SUGGESTED MOTION Move to approve a resolution acknowledging receipt of the Annual Comprehensive Financial Report (ACFR) for the City of Eugene, for the fiscal year ended June 30, 2024. ATTACHMENTS A. Resolution B. Moss Adams Report to the Governing Body FOR MORE INFORMATION Staff Contact: Telephone: Staff E-Mail: CC Agenda Page 106 Brett Gomsrud 541-682-5024 bgomsrud@eugene-or.gov -- 107 of 123 -- Resolution - Page 1 of 1 RESOLUTION NO. XXXX A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE ANNUAL COMPREHENSIVE FINANCIAL REPORT OF THE CITY OF EUGENE FOR THE FISCAL YEAR ENDED JUNE 30, 2024 The City Council of the City of Eugene finds that: A. The City has prepared financial statements and an Annual Comprehensive Financial Report for the Fiscal Year ended June 30, 2024 (the “2024 ACFR”). B. The independent firm of Moss Adams has completed an audit of the 2024 ACFR as required by ORS 297.425 and, pursuant to ORS 297.465, issued its findings to the Mayor and the City Council via the Report of the Independent Auditors. 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. That the City Council hereby acknowledges receipt of the Report of the Independent Auditors on the audited 2024 ACFR. Section 2. This Resolution shall become effective immediately upon its passage by the City Council. The foregoing Resolution adopted the 27th day of January, 2025. _____________________________ City Recorder Attachment A January 27, 2025 Meeting – Item 11 CC Agenda Page 107 -- 108 of 123 -- Communications with Those Charged with Governance City Of Eugene, Oregon June 30, 2024 Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 108 -- 109 of 123 -- 1 Communications with Those Charged with Governance To the Honorable Mayor and Members of the City Council City of Eugene, Oregon We have audited the financial statements of the governmental activities, business-type activities, each major fund and the aggregate remaining fund information of the City of Eugene, Oregon (the “City”), as of and for the year ended June 30, 2024. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America and Generally Accepted Government Auditing Standards As stated in our audit contract dated May 12, 2021, and amendment signed on June 26, 2024, we are responsible for forming and expressing an opinion about whether the financial statements prepared by management, with your oversight, are prepared, in all material respects, in conformity with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. We conducted our audit in accordance with auditing standards generally accepted in the United States of America (U.S. GAAS) and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States. As part of an audit conducted in accordance with those standards, we exercise professional judgment and maintain professional skepticism throughout the audit. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over financial reporting. Accordingly, we considered the City’s internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. The supplementary information was subject to certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves. Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 109 -- 110 of 123 -- 2 Other Information in the Financial Statements Management is responsible for the other information included in the financial statements. The other information comprises the introductory section and statistical section, but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. Our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the audited financial statements. We have read the information, and nothing came to our attention that caused us to believe that such information is materially inconsistent with the financial statements. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in contract. Significant Audit Findings and Issues Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the City are described in Note 1 to the financial statements. There were no changes in the application of existing policies during 2024; however, the City implemented the following new accounting standard of the Governmental Accounting Standards Board (GASB): GASB 100 – Accounting Changes and Error Corrections We noted no transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant accounting estimates are the remaining useful lives of capital assets being depreciated, lease discount rates used and the decisions to extend lease agreements, and post-employment benefit obligations for retirement and health plans. Financial Statement Disclosures The disclosures in the financial statements are consistent, clear and understandable. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements were: Disclosure of the reporting entity and significant accounting policies in Note 1 to the financial statements. This disclosure reports the operations under the governance of the elected officials, as well as the more significant policies used by the City in the preparation of the financial statements. Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 110 -- 111 of 123 -- 3 Disclosure of the equity in pooled cash and investments in Note 4(A) to the financial statements. This disclosure provides the details of the amounts of cash and investments held in the various types of depositories and securities at year end, as well as the details of the nature of the risks inherent in the City’s cash and investment portfolio. Disclosure of the City’s noncurrent liabilities in Note 4(H) to the financial statements. This disclosure provides the details of the amounts and types of debt outstanding at year end along with the repayment terms, significant covenants, and future maturities of principal and interest. Disclosure of the City’s risk management programs in Note 5(A) to the financial statements. This disclosure provides a summary of the various risks of loss the City is exposed to, and its method of financing those risks. This note also provides a reconciliation of claims liabilities for the past two years. The claims liability is an estimate that is based on assumptions, and actual results could vary significantly from those estimates. Disclosure of post-employment pension and healthcare benefits in Notes 5(C)-(F) to the financial statements. These required disclosures include details on the pension and post-retirement health care benefits the City provides its employees. The recorded liabilities for benefits included in the financial statements are estimates based on assumptions regarding future personnel costs and healthcare trend rates, discount rates, and many other actuarial assumptions. Significant Unusual Transactions We encountered no significant unusual transactions during our audit of the City’s financial statements. Significant Difficulties Encountered in Performing the Audit Professional standards require us to inform you of any significant difficulties encountered in performing the audit. No significant difficulties were encountered during our audit of the City’s financial statements. Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of our audit. Circumstances that Affect the Form and Content of the Auditor’s Report There may be circumstances in which we would consider it necessary to include additional information in the auditor’s report in accordance with generally accepted auditing standards, Government Auditing Standards, or Minimum Standards for Audits of Oregon Municipal Corporations. There were no circumstances that affected the form and content of the auditor’s report. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all factual and judgmental misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No corrected or uncorrected misstatements were identified during the audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 23, 2024. Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 111 -- 112 of 123 -- 4 Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the City’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Significant Audit Findings or Issues We are required to communicate to you other findings or issues arising from the audit that are, in our professional judgment, significant and relevant to your oversight of the financial reporting process. We want to bring the following best practices matter to your attention. During 2024, the City’s Governmental Activities added leases of $6,902,108, and the City omitted reporting these lease issuances in its governmental funds. GASB Statement No. 87, Leases, par. 36 requires an expenditure and other financing source should be reported in the period the lease is initially recognized. We recommend the City has an internal control in place to ensure new leases are properly reported in the governmental funds. Capital outlay is the suggested expenditure account to use. This information is intended solely for the use of the City Council and management of the City and is not intended to be and should not be used by anyone other than these specified parties. Eugene, Oregon December 23, 2024 Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 112 -- 113 of 123 -- Attachment B January 27, 2025 Meeting – Item 11 CC Agenda Page 113 -- 114 of 123 -- January 27, 2025 Meeting – Item 12 EUGENE U RBAN RENEWAL A GENCY A GENDA ITEM SUMMARY Action: Resolution Acknowledging Receipt of the Annual Financial Report of the Urban Renewal Agency of the City of Eugene for the Fiscal Year Ended June 30, 2024 Meeting Date: January 27, 2025 Agenda Item Number: 12 Department: Central Services Staff Contact: Brett Gomsrud www.eugene-or.gov Contact Telephone Number: 541-682-5024 ISSUE STATEMENT This is a resolution acknowledging receipt of the Annual Financial Report (Report) of the Urban Renewal Agency (Agency) of the City of Eugene for the fiscal year ended June 30, 2024. This resolution demonstrates compliance with ORS 297.465(2), which requires that a copy of the Agency’s financial report, containing a signed expression of opinion, be furnished to each member of the governing body. The resolution is included as Attachment A. BACKGROUND Under Oregon Municipal Audit Law, the Agency is required each fiscal year to contract with an authorized accounting firm for the audit of its accounts and fiscal affairs (ORS 297.425). The regional firm of Moss Adams (auditors) has completed the audit of the Agency’s annual financial report for the fiscal year ended June 30, 2024 and issued an unmodified opinion (also known as a "clean opinion") on the basic financial statements. A complete copy of the Fiscal Year 2024 (FY24) Report can be found on the City’s Financial Reports website. The key components of the audit results are the two auditors' reports on pages 3-5 and pages 45- 46. In the first report, the auditors have issued an unmodified opinion on the Agency’s basic financial statements, indicating that the Agency has prepared the statements in conformity with generally accepted accounting principles (GAAP). GAAP for state and local governments is promulgated by the Governmental Accounting Standards Board to ensure consistency in accounting and comparability in financial reporting among state and local governments. A clean opinion is a fundamental financial goal for every government, as it represents the highest level of opinion a government can receive from its independent auditors. A clean opinion is an important indicator of sound financial management and creditworthiness to the citizens, other governmental jurisdictions (state and federal), credit rating agencies, investment bankers, bond holders, and other private sector entities. For policy makers, a clean opinion means that the information in the Annual Financial Report is accurate and reliable. In the second report, the auditors address the Agency’s compliance with applicable provisions of Oregon Revised Statutes including requirements related to debt, deposit of public funds, prepara- tion and adoption of the budget, accounting records and related internal control structure, etc. The auditors noted that nothing came to their attention that caused them to believe that the Agency was not in compliance with state regulations. The auditors conduct the audit of the CC Agenda Page 114 -- 115 of 123 -- January 27, 2025 Meeting – Item 12 Agency’s basic financial statements in accordance with generally accepted auditing standards and the Minimum Standards for Audits of Oregon Municipal Corporations. One additional report, beginning on page 49, specifically addresses compliance with Federal laws, regulations, contracts, and grants, and indicates that the auditors found no material instances of the City's noncompliance with these requirements. Management is responsible for the information contained in, and the preparation of, the Agency’s financial statements. To effectively fulfill this responsibility and to contain the cost of auditor services, staff devotes significant effort to the closing of accounting records, the preparation of schedules and audit work papers, and the production of the Annual Financial Report. This also results in staff expertise being developed on specific financial and service issues that can then be used to assist departments and other pertinent parties. Professional requirements mandate auditors provide a report to the governing body that addresses any concerns or findings they encountered in such audit-related issues as significant audit findings, accounting estimates and disagreements with management. Moss Adams’ memo addressing these issues for fiscal year 2024 is included as Attachment B and it states that there were no concerns that required communication to the Agency. PREVIOUS AGENCY DIRECTION None. AGENCY OPTIONS Council has the option to accept the ACFR and audit opinions or not accept the ACFR and audit opinions. AGENCY DIRECTOR’S RECOMMENDATION The Agency Director recommends adoption of the Resolution. SUGGESTED MOTION Move to approve a resolution acknowledging receipt of the Annual Financial Report for the Urban Renewal Agency of the City of Eugene for the fiscal year ended June 30, 2024. ATTACHMENTS A. Resolution B. Moss Adams Report to the Governing Body (URA) FOR MORE INFORMATION Staff Contact: Brett Gomsrud Telephone: 541-682-5024 Staff E-Mail: bgomsrud@eugene-or.gov CC Agenda Page 115 -- 116 of 123 -- Resolution - Page 1 of 1 RESOLUTION NO. XXXX A RESOLUTION ACKNOWLEDGING THE RECEIPT OF THE ANNUAL FINANCIAL REPORT OF THE URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, FOR THE FISCAL YEAR ENDED JUNE 30, 2024 The Urban Renewal Agency Board of the City of Eugene finds that: A. The City has prepared financial statements and an Annual Financial Report of the Urban Renewal Agency, a Component Unit of the City of Eugene for the Fiscal Year ended June 30, 2024 (the “2024 Annual Financial Report”). B. The independent firm of Moss Adams has completed an audit of the 2024 Annual Financial Report as required by ORS 297.425 and, pursuant to ORS 297.465, issued its findings to the Urban Renewal Agency Board via the Report of the Independent Auditors. NOW, THEREFORE, BE IT RESOLVED by the Urban Renewal Agency of the City of Eugene as follows: Section 1. That the Urban Renewal Agency Board hereby acknowledges that it has received the Report of the Independent Auditors on the audited 2024 Annual Financial Report. Section 2. This Resolution shall become effective immediately upon its passage by the Urban Renewal Agency Board. The foregoing Resolution adopted the 27th day of January, 2025. ______________________________ City Recorder Attachment A January 27, 2025 Meeting – Item 12 CC Agenda Page 116 -- 117 of 123 -- Communications with Those Charged with Governance Urban Renewal Agency of the City of Eugene, Oregon June 30, 2024 Attachment B January 27, 2025 Meeting – Item 12 CC Agenda Page 117 -- 118 of 123 -- 1 Communications with Those Charged with Governance To the Honorable Mayor, Members of the Urban Renewal Agency Board and Administrator of the Urban Renewal Agency of the City of Eugene, Oregon We have audited the accompanying financial statements of the governmental activities and each major fund of the Urban Renewal Agency of the City of Eugene, Oregon (a component unit of the City of Eugene, Oregon) (“the Agency”) as of and for the year ended June 30, 2024 and have issued our report thereon dated December 23, 2024. Professional standards require that we provide you with the following information related to our audit. Our Responsibility under Auditing Standards Generally Accepted in the United States of America, Generally Accepted Government Auditing Standards, and Minimum Standards for Audits of Oregon Municipal Corporations As stated in our audit contract signed May 12, 2021 and amendment signed on June 26, 2024, we are responsible for forming and expressing opinions about whether the financial statements that have been prepared by management, with your oversight, are prepared, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your responsibilities. Our responsibility is to plan and perform the audit in accordance with auditing standards generally accepted in the United States of America, the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of the Minimum Standards for Audits of Oregon Municipal Corporations, prescribed by the Oregon Secretary of State. Those standards require that we plan and perform the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Agency’s internal control over financial reporting. Accordingly, we considered the Agency’s internal control solely for the purposes of determining our audit procedures and not to provide assurance concerning such internal control. We are also responsible for communicating significant matters related to the financial statement audit that, in our professional judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you. Attachment B January 27, 2025 Meeting – Item 12 CC Agenda Page 118 -- 119 of 123 -- 2 Other Information in Documents Containing Audited Financial Statements With respect to the supplementary information accompanying the financial statements, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. Planned Scope and Timing of the Audit We performed the audit according to the planned scope and timing previously communicated to you in the contract. Significant Audit Findings and Issues Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by the Agency are described in Note 1 to the financial statements. During the year, the Agency adopted GASB 100, Accounting Changes and Error Corrections. There was no effect on the Agency’s financial statements due to the adoption of this standard. There were no changes in the application of existing policies during 2024. We noted no transactions entered into by the Agency during the year for which there is a lack of authoritative guidance or consensus. There are no significant transactions that have been recognized in the financial statements in a different period than when the transaction occurred. Significant Accounting Estimates Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most significant accounting estimate is the valuation of the assets held for resale. Financial Statement Disclosures The disclosures in the financial statements are consistent, clear, and understandable. Certain financial statement disclosures are particularly sensitive because of their significance to financial statement users. The most sensitive disclosure affecting the financial statements was the disclosure of the reporting entity and significant accounting policies in Note 1 to the financial statements. Significant Unusual Transactions We encountered no significant unusual transactions during our audit of the Agency’s financial statements. Significant Difficulties Encountered in Performing the Audit Professional standards require us to inform you of any significant difficulties encountered in performing the audit. No significant difficulties were encountered during our audit of the entity’s financial statements. Attachment B January 27, 2025 Meeting – Item 12 CC Agenda Page 119 -- 120 of 123 -- 3 Disagreements with Management For purposes of this letter, professional standards define a disagreement with management as a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all factual and judgmental misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. No corrected or uncorrected misstatements were identified during the audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated December 23, 2024. Management Consultation with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a “second opinion” on certain situations. If a consultation involves application of an accounting principle to the Agency’s financial statements or a determination of the type of auditor’s opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Significant Audit Findings or Issues We are required to communicate to you other findings or issues arising from the audit that are, in our professional judgment, significant and relevant to your oversight of the financial reporting process. There were no such items identified. This information is intended solely for the use of the Honorable Mayor, Members of the Agency Board, Administrator of the Agency and management and is not intended to be and should not be used by anyone other than these specified parties. Eugene, Oregon December 23, 2024 Attachment B January 27, 2025 Meeting – Item 12 CC Agenda Page 120 -- 121 of 123 -- Attachment B January 27, 2025 Meeting – Item 12 CC Agenda Page 121 -- 122 of 123 -- January 27, 2025 Meeting – Item 13 EUGENE C ITY C OUNCIL A GENDA ITEM SUMMARY Public Comment Meeting Date: January 27, 2025 Agenda Item Number: 13 Department: Central Services Staff Contact: Natalie Venhuda www.eugene-or.gov Contact Telephone Number: 541-682-8497 ISSUE STATEMENT This item allows members of the public the opportunity to express opinions and provide information to the council. Comments presented during the public comment period should be on city-related issues and should not address items which have already been heard by a Hearings Official, items on the present agenda as a public hearing item, or items related to a quasi-judicial matter after the official record has been closed. BACKGROUND Per City Council’s operating agreement, speakers at the public comment period will be limited to two and a half minutes and the total time will be limited to 90 minutes total. Speakers will be randomized, and no persons will be allowed to submit a “Request to Speak” form more than 30 minutes prior to the start of the meeting. Persons wishing to speak must sign up to do so not later than 5 minutes after the meeting has been opened by the Mayor or presiding officer. At the end of the public comment period each member of the Council has the opportunity to respond to comments made. The time allocated to each member of the Council for such responses shall be up to three minutes. FOR MORE INFORMATION Staff Contact: Natalie Venhuda, City Council Coordinator Telephone: 541-682-8497 Staff E-Mail: nvenhuda@eugene-or.gov CC Agenda Page 122 -- 123 of 123 --
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The Eugene City Council held a work session on October 13, 2025, to review the Police Commission's Fiscal Year 2025 Annual Report and to consider approval of the proposed FY 2026 and FY 2027 Biennial Work Plan. The meeting also included discussion of City Council Operating Agreements. The hybrid meeting was accessible to the public both in-person and virtually, with accommodations available for individuals requiring interpretation services.
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