City Auditor - City Recorder - Council Resolutions - 36202 Irvington St TOD Abatement application resolution

RESOLUTION NO. 36202

Approve the Application of Irving Street Properties, LLC for a ten-year property tax exemption for a transit oriented development project (Resolution)

WHEREAS, Chapter 3.103 of the City Code provides that ten year property tax exemptions are available to encourage the development of high density housing and mixed use projects affordable to a broad range of the general public on vacant or underutilized sites within walking distance of light rail stations and within transit oriented areas defined in the Code; and

WHEREAS, Irving Street Properties, LLC (Applicant), 737 NE 99^th Avenue Portland, OR 97220, owns property bounded by NE Pacific Street to the north, NE Irving Street to the south, NE 99^th Avenue to the east, and Interstate 205 to the west, legally described as:

Beginning at a ¾” iron pipe at the Southwest corner of Lot 3, BESS ANDERSON SUBDIVISION, in the City of Portland, County of Multnomah and State of Oregon; thence along the South line of Lots 3, 2 and 1, BESS ANDERSON SUBDIVISION, South 89 degree 53 minutes and 16 seconds East 161.51 feet to the West right-of-way line of NE 99^th Avenue; thence along said right-of-way line North0degree 02minutes 44 seconds East 75.00 feet; thence North 89 degree 53 minutes and 16 seconds West 161.32 feet to a 5/8 inch iron rod on the West line of said Lot 3; thence South 0 degree 11 minutes 28 seconds West 75.00 feet to the point of beginning, and containing 0.278 acres, or more or less.

Tax Accounts R115975, Tax Lot No. 05700; and

WHEREAS, the Property is located within the Gateway Plan District Transit Oriented Area, which is an area eligible for a transit-oriented property tax exemption as provided by Chapter 3.103 of the City Code; and

WHEREAS, the Applicant proposes to construct a transit-oriented development project which includes 24 for sale condominiums, known as Phase II of the Gateway Arbors Phase II (Project); and

WHEREAS, the Project conforms with the Comprehensive Plan, the requirements of the Gateway Plan District, and the Gateway Regional Center Urban Renewal Plan for the reasons contained in the Portland Development Commission report and recommendation attached as Exhibit A; and

WHEREAS, the Project contains public benefits as required by City Code Section 3.103.040 necessary for approval of the ten year property tax exemption on the residential improvement value; and

WHEREAS, it is in the public interest that the limited property tax exemption for the proposed Project be adopted in order to meet the City goals described in the Comprehensive Plan, the Gateway Plan District, and the Gateway Regional Center Urban Renewal Plan; and

WHEREAS, the Applicant has applied to the Portland Development Commission for a ten-year property tax exemption, as provided by Chapter 3.103 of the City Code; and

WHEREAS, on January 22, 2004, the Portland Development Commission Loan Review Committee reviewed the proposed Project and recommended that the application be approved based on the approval criteria required by City Code Section 3.103.045, and on a finding that the tax exemption is necessary to make the project feasible, subject to the public benefit conditions set forth in the Portland Development Commission report and recommendation (Exhibit A); and

WHEREAS, this Resolution was made available to the applicant, the City Council, and any interested agencies or individuals at least 14 days prior to consideration of this resolution by the City Council as required by section 3.103.050 of the City Code.

NOW, THEREFORE, BE IT RESOLVED, that that the application of Irving Street Properties, LLC for the ten year property tax exemption as provided by Chapter 3.103 of the City Code for a transit-oriented development project which includes 24 for sale condominiums (Project) is hereby approved, based on the findings contained in the Portland Development Commission report and recommendation (Exhibit A), for the following described Property:

Tax Accounts R115975, Tax Lot No. 05700.

BE IT FURTHER RESOLVED, that this application is approved subject to the following conditions:

1. Purchasers of individual units will qualify for the tax abatement based on two criteria:

A. The purchase price may not exceed 95 percent of the median purchase price for a condominium unit in Multnomah County as established by the U.S. Department of Housing and Urban Development for the purpose of determining FHA loan qualification. This index currently stands at $189,905. 95 percent of this loan amount is $180,410.

B. The unit must be sold to a household earning no more than 100 percent of the area median income for a family of four as established by the U.S. Department of Housing and Urban Development, or its successor agency, during the year of sale in order to retain its tax exempt status. This index is currently $65,800.

2. Should any unit become available for resale during the term of the exemption, it must be sold to a household earning no more than 100 percent of the area median income for a family of four as established by the U.S. Department of Housing and Urban Development, or its successor agency, during the year of sale in order to retain its tax exempt status. If the buyers of the unit meet this qualification, the unit would remain eligible for the remainder of the abatement term.

3. No more than 50 percent of the residential units in the Project (24 units) may be rented at any given time, either as a result of investors purchasing units as rentals, or unsold units which are rented by the developer. Rental units in the Project will qualify for the tax abatement if those units are made available for rent to households at or below 60% MFI. Presently 60% MFI for a household of four is $39,500 resulting in a cap of $988 per month, including utilities ($39,500/12 x .3 = $988). Should the owners determine that this arrangement is not economically feasible, they may forego the property tax exemption after conferring with staff from the Portland Development Commission. The owners may retain the option of selling the unit and re-establishing the ten year property tax exemption for the number of years remaining in the initial ten year exemption period within five years from the date of the issuance of occupancy permits and upon a demonstration of compliance with the provisions of Condition Number 1 noted above.

4. Should any of the unit which have been initially sold to owner-occupants, thereby qualifying under the terms of Section 3.103.040 (C) of the City Code, convert to renter occupancy during the ten year term for the tax exemption, those units shall lose their tax exemption status.

5. The Project will comply with all applicable standards of Titles 17, 24, 32, and 33of the City Code, as well as all conditions of approval of any land use and design reviews.

6. These and any other public benefits including transit oriented features, shall 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, PDC, and Design Review Commission, as appropriate.

BE IT FURTHER RESOLVED, that the Portland Development Commission staff shall file with the Assessor a copy of this resolution approving the application, as provided in section 3.103.050(E) of the City Code.

Adopted by the Council: March 10, 2004

Mayor Vera Katz GARY BLACKMER

John Marshall, PDC Auditor of the City of Portland

March 1, 2004

By: /S/ Susan Parsons

Deputy

BACKING SHEET INFORMATION

AGENDA NO. 224-2004

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 36202

COMMISSIONERS VOTED AS FOLLOWS:

	YEAS	NAYS
FRANCESCONI	X
LEONARD	X
SALTZMAN	X
STEN	X
KATZ	===	===