ORDINANCE No. 180727

Extend the ten-year property tax exemption for the Westshore Apartments by one year to facilitate the transfer of the property from Pine Street Associates Limited Partnership to a nonprofit partner (Ordinance)

The City of Portland ordains:

Section 1.  The Council finds that:

1.  Brian McCarl, representing Pine Street Associates Limited Partnership, applied for a 10-year property tax exemption under the New Multiple-Unit Housing tax exemption program found in City Code Chapter 3.104, in March 1996 for property legally described as Pine Street Condominium.

2.  This property is located above the Pine Street parking garage on the block bounded by SW 2nd, 3rd, Oak, and Pine. (The project has a condominium arrangement with the parking garage but is a rental project.) The tax account number for the property is R243997. The subject property is located in an eligible area (the Central City plan district) as required by Chapter 3.104 of the City Code.

3.  The City Council approved a 10-year tax limited tax exemption on August 7, 1996, by adopting Ordinance No. 170447. One of the conditions of approval was that 100 percent of the rental units be affordable to households at or below 50 percent area median family income (MFI).

4.  The applicant constructed the Pine Street Apartments, a three-story, 113-unit apartment development now named the Westshore Apartments, above the Pine Street parking garage, with financial assistance from the State of Oregon that included a risk-share bond.

5.  The tax exemption went into effect in the summer of 1997 after the applicant received a certificate of occupancy for the project. The residential units have been rented or are available for rent in order to be eligible for the limited property tax exemption authorized by this ordinance.

6.  Because of the financial assistance provided by the State of Oregon, all of the units in this project must remain affordable to low-income households at or below 50 percent MFI for a period longer than the 10-year exemption.

7.  Pine Street Associates Limited Partnership has elected to invite a nonprofit partner to replace them in the project to ensure the viability of the low-income housing once the tax exemption expires. The nonprofit partner will be eligible for a property tax exemption while serving the same tenant population.

8.  One of the State bond related financing actions necessary to complete the restructure requires a six-month waiting period before a new partner can enter into the partnership.

9.  Pine Street Associates Limited Partnership requests a one-year extension of the tax exemption so that the property can be transferred to a nonprofit partner without incurring additional costs.

10.  The State statutes that authorize the City's New Multiple-Unit Housing tax exemption program, Oregon Revised Statutes 307.600 - 307.650, allow a city or county to extend a tax exemption if the multiple-unit housing is subject to a low-income housing assistance contract with the State or United States.

11.  The Portland Development Commission (PDC) recommended to the Planning Commission and City Council approval of a one-year extension of the tax exemption by adopting PDC Resolution No. 10 on November 8, 2006. The Commission approved the resolution after reviewing the PDC staff report 06-122.

12.  The Planning Commission held a hearing on November 28, 2006, on the requested one-year extension of the 10-year term of the tax exemption for the purpose of transferring the property to a nonprofit partner and unanimously recommended approval to the City Council.

13.  The Planning Commission found that the one -year term extension would aid the preservation of the 113 housing units at rents affordable to low-income households, which supports the City's No Net Loss of affordable housing in the Central City initiative adopted by Resolution 360021 in 2001.

14.  The Planning Commission found that the one-year term extension supports the City’s Comprehensive Plan Housing Policy which calls for encouraging the retention of existing rental housing at rent levels affordable to area residents. This housing was originally built to serve entry-level workers and other low income Downtown residents.

15.  The Westshore Apartments are 100 percent affordable to households with incomes below 60 percent MFI and have longterm affordability agreements with the City or other public agencies. As such, the project is qualified as exempt from the moratorium on applications under the multiple-unit housing property tax exemptions established by Ordinance No. 180327, subsection b, passed by the Council on July 19, 2006.

NOW, THEREFORE, the Council directs:

a.  The request for a one-year extension of the term of the tax exemption provided by Chapter 3.104 of the Municipal Code of the City of Portland, Oregon, and ORS 307.600-690 is hereby approved for the following property:

 The Pine Street Condominium (Tax Account No. R243997) developed in the air rights over Lots 1, 2, 5-8; Block 30; Portland Addition;

b.  The conditions of the approval in Ordinance No. 170447 shall apply for the eleventh year of the exemption.

c.  The commentary in Exhibit A, Planning Commission’s Report and Recommendation on a Request to Extend the Term of a Ten-Year Tax Exemption for One Year for the Westshore Apartments, shall be accepted as legislative intent and as findings.

d.  The Bureau of Planning shall 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, JANUARY 17, 2007

Mayor Potter

Barbara Sack              Gary Blackmer

December 27, 2007              Auditor of the City of                      Portland

                 by /s/Susan Parsons

                       Deputy

BACKING SHEET INFORMATION

AGENDA NO. 33, 61-2007

ACTION TAKEN:

JAN 10, 2007 PASSED TO SECOND READING JAN 17, 2007 9:30

ORDINANCE/RESOLUTION/COUNCIL DOCUMENT NO. 180727