Eugene City Council grants more funding, tax exemption for Willamette Street housing project
In a series of three unanimous votes Wednesday, Eugene city councilors increased their investment and granted a tax exemption for the six-story mixed-use redevelopment of the former Lane Community College downtown building at 1059 Willamette St.
The council increased the city's financial contribution to the project by $740,000, granted it a 10-year property tax exemption, approved an increase to the number of apartment units the project could include and allowed a delay for the start of construction.
Councilors said the project — which would feature a ground floor with space for art and commercial use and five stories of apartments, half of which will be affordable — was the sort of development they wanted to encourage.
"This may be one of the most robust examples of building up, not out, combining mixed-use, mixed economy — both affordable housing and market-rate housing — and partnering with our service providers … in the entire state," Councilor Matt Keating said.
Additional funding for Willamette Street housing project OK'd
In Wednesday's first vote, councilors approved an additional $740,000 from the city's Downtown Urban Renewal fund for the project, bringing the city's contribution up to $1.84 million, plus land and tax breaks.
Councilors cited increased construction costs as the reason for the increased investment. When city councilors approved the project in June 2021, the city projected construction would cost $30 million. Now it's projected to cost $34 million.
"We need more housing downtown so desperately, and the construction costs and demolition costs for anything downtown have gone up," Councilor Emily Semple said.
City agrees to contract changes with housing developer
In their second vote, councilors approved changes to their contract with developer deChase Miksis and Edlen & Company to incorporate that extra investment, increase the number of apartment units and add more flexibility to the construction start date.
The project grew to include four more apartment units than previously planned, bringing the total to 133 housing units: 65 that would be market-rate and 68 that would be reserved for households earning less than 80% of area median income ($47,250 for a single person in Eugene-Springfield).
The affordable units would all be studios. The market-rate units are planned to include six studios, 54 one-bedroom apartments and five two-bedroom apartments.
Construction date approved for housing project
Councilors also OK'd a delayed construction start date. The previous contract said deChase would start construction no later than Oct. 31, 2024. Councilors extended that date to Feb. 1, 2025, to allow more time for the project's environmental review.
"It is possible they'll be ready to start construction by that date," Eugene Development Programs Manager Amanda D’Souza told councilors, but the contract change would "provide a small cushion, should these steps take longer than anticipated."
Eugene grants tax exemption for development
In their third vote, councilors granted a Multi-Unit Property Tax Exemption to the project. The MUPTE is a city program where councilors can waive property taxes for a development's first 10 years in order to encourage denser housing development.
Even councilors who are usually skeptical of MUPTE applications said they agreed with using the program for this project because of the affordable housing it includes.
"The particular part of this project that I like is the affordable housing aspect, which is greater than 50% of the units," Councilor Alan Zelenka said. "That's different than almost all other MUPTEs that have come before us."
Alan Torres covers local government for the Register-Guard. He can be reached over email at atorres@registerguard.com or on X @alanfryetorres.
This article originally appeared on Register-Guard: Eugene approves funds, tax breaks for Downtown housing project
