ORDINANCE No. 177152

Grant a ten-year property tax exemption to Prendergast Associates for new multiple-unit housing on the block bounded by NW 9th and 10th Avenues, NW Lovejoy Street, and the Kearney walkway. (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds that:

1.  Prendergast Associates has applied for a ten-year property tax exemption for property located at Pearl Block No. 4; Lots 55, 56 and F, NEW PLAT 1997 (State Tax ID#s 1N1E34BC 300, 400 and 500) on the block bounded by NW 9th and 10th Avenues, NW Lovejoy Street, and Kearney walkway. The property ID Numbers are , R241289, R241290 and R241270. The applicant proposes to construct a 163-unit middle and upper income rental project with ground floor commercial space currently known as the Pearl Block Apartments.

2.  The subject property is located in an eligible area (within the Central City plan district and the River District Urban Renewal Area) as required by Chapter 3.104 of the City Code.

3.  The proposed development conforms with the Comprehensive Plan and other relevant Council-adopted plans and policies, and the applicable regulations for the reasons contained in the Planning Commission Report and Recommendation. These plans, policies, and regulations include the Central City Plan; the Central Employment (EX) Zone and Plan designation; the River District Urban Renewal Plan; and the development agreement between the Hoyt Street Properties and the City of Portland.

4.  The proposed development contains public benefits necessary for approval of the ten-year property tax exemption on the improvement value of the structure.

5.  On October 9, 2002, the Portland Development Commission reviewed the proposed development and recommended to the Planning Commission that the application be approved on a finding that the tax exemption is necessary to make the project feasible at rental rates affordable to a wider range of household incomes than would otherwise be possible without the tax exemption.

6.  On October 22, 2002, the Planning Commission held a public hearing and found that the project complies with the eligibility requirements of Section 3.104.010 of the Municipal Code and contributes public benefits sufficient to carry out the purposes of this property tax exemption program.

7.  At their meeting, the Portland City Planning Commission voted that this application be approved subject to the public benefit conditions set forth in the Planning Commission Report and Recommendation and contained in this ordinance.

8.  It is in the public interest that the limited property tax exemption for the proposed development be adopted in order to meet the City's goals for housing as stated in the Central City Plan, the Housing Goal of the Comprehensive Plan, and the housing production goals of the Central City 2000 Plan.

NOW, THEREFORE, the Council directs:

a.  The application of Prendergast Associates for the ten year property tax exemption provided by Chapter 3.104 of the Municipal Code of the City of Portland, Oregon, and ORS 307.600-691 is hereby approved for the following property:

 Lots 55 and 56 and Tract F, Pearl Block 4, New Plat 1997; Property ID Numbers R241290, R241289 and R241270.

b.  The application described in paragraph “a” above is approved subject to the following conditions:

1.  The public benefits listed in Section V. B of the Planning Commission’s Report and Recommendation and any others be provided in accordance with agreements reached or conditions imposed by the relevant review bodies and agencies, including but not limited to the Planning Bureau, the Portland Development Commission, or Design Review Commission, as appropriate.

2.  The project complies with all applicable standards of Title 33, Planning and Zoning, as well as all conditions of approval of any land use and design reviews, including the conditions of approval for LUR 02-127082 and the development agreement between the City of Portland and Hoyt Street Properties (1997).

3.  Ground level, locally-oriented retail and service businesses serving individuals and households in this building, as well as visitors, can qualify as a public benefit under the terms of this exemption. A determination by the Director of the Bureau of Planning shall be made if there is a question regarding the neighborhood orientation of the proposed commercial and service uses.

4.  The project will not convert to condominiums within the 10-year property tax exemption.

c.  The Bureau of Planning will provide copies of this Ordinance to the applicant and the Multnomah County Tax Assessor as prescribed by Section 3.104.050(1)(d) of the Code of the City of Portland.

Passed by the Council, DEC 18 2002

Mayor Vera Katz

Barbara Sack:bjs

December 11, 2002          GARY BLACKMER      

             Auditor of the City of Portland                  By /S/ Susan Parsons                       Deputy

BACKING SHEET INFORMATION

AGENDA NO. 1453, 1484-2002

ACTION TAKEN:

DEC 11 2002 PASSED TO SECOND READING DEC 18 2002 9:30 A.M.

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 177152