ORDINANCE No. 177450

* Grant a ten-year property tax exemption to Station Place LLC for new multiple-unit housing on the southwest portion of the block bounded by NW 9th Avenue, NW Marshall Street, NW Station Way, the Lovejoy ramp and NW Lovejoy Court. (Ordinance)

The City of Portland ordains:

Section 1. The Council finds that:

1. Station Place LLC, which is an affiliate of REACH Community Development Corporation, an Oregon nonprofit organization, has applied for a ten-year property tax exemption for property located on Lot 1, Station Place. The property includes portions of tax lots with state ID numbers 1N1E34BB 1300 and 2300 that have tax account numbers R140954 and R140957. This site is on the southwest portion of the block bounded by NW 9th, NW Marshall Street, NW Station Way, the Lovejoy ramp and NW Lovejoy Court.

2. The applicant proposes to construct a 14-story residential tower with 176 units for low and moderate-income senior households with 1,513 square feet of ground floor commercial space.

3. The proposed name for the project is the Tower at Station Place and it will contain studio, one-bedroom, and two-bedroom apartments affordable to senior households at 30, 50 and 80 percent of area median income. These units will be required to remain affordable to low and moderate-income households for at least 60 years because of City subsidies granted to this project other than the tax exemption.

3. 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.

4. The proposed development conforms with the Comprehensive Plan, 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 EX, Central Employment Zone and Comprehensive Plan map designation; the River District Urban Renewal Plan; the River District Housing Implementation Strategy; and the Pearl District Development Plan.

5. The proposed development contains public benefits necessary for approval of the ten-year property tax exemption on the improvement value of the residential structure and the ground floor commercial space.

6. On April 16, 2003, the Portland Development Commission reviewed the proposed development and adopted Resolution 7. This resolution recommends to the Planning Commission and City Council that the application be approved on a finding that the tax exemption is necessary to make rents affordable to a range of low and moderate income senior households and to achieve a rate of return on the project of -1.7%.

7. On April 22, 2003, 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.

8. At their meeting, the Planning Commission voted unanimously 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.

9. 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 Housing Goal of the Comprehensive Plan, and the housing production goals of the River District amendments to the Central City Plan (1995).

NOW, THEREFORE, the Council directs:

a. The application of Station Place LLC 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:

Lot 1, Station Place (State ID Numbers 1N1E34BB 1300 and 2300); Property ID Numbers R140954 and R140957.

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

1. The apartment units be maintained as rental housing and not convert to condominiums or other ownership arrangement during the ten year term of the property tax exemption.

2. All of the units continue to be affordable to low and moderate income households with incomes at 30, 50, and 80 percent of the area median income during the ten-year term of the exemption. The rent schedule is based on the annual formula for units of varying size based on number of bedrooms and using the area median income for the Portland Metropolitan Area as determined by the U.S. Department of Housing and Urban Development pro-rated for family size. Nothing in this tax exemption approval modifies any other affordability obligation, including the number of years of affordability, that is associated with other public assistance provided to this project.

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. These and any other public benefits be provided in accordance with agreements reached by the relevant review bodies and agencies, including but not limited to the Planning Bureau and the Portland Development Commission. This includes the regulatory agreement that will be recorded and executed by Station Place Tower Limited Partnership with Station Place LLC as the managing general partner.

5. The project comply 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 LUR 01-00776 DZM.

c. The Bureau of Planning 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.

Section 2. The Council declares that an emergency exists because evidence of this property tax exemption approval is necessary to ensure the closing of this project by the end of May 2003, which includes securing state bond funding. Therefore this ordinance shall be in full force and effect from and after its passage by Council.

Passed by the Council, May 07, 2003

Mayor Vera Katz

Barbara Sack:bjs GARY BLACKMER

April 24, 2003 Auditor of the City of Portland

By /S/ Susan Parsons



AGENDA NO. 410-2003