Council approves 20-year property-tax exemption for Lucy Apartments; union raises labor-standards concerns

The Eugene City Council voted Oct. 27 to approve a 20-year low-income rental housing property tax exemption for the Lucy Apartments, a planned development at 860 Hunsaker Lane that will include 36 income-restricted units serving households at or below 60% of area median income.

The council first voted to adopt an ordinance amending the Eugene code to align with updated state statutes and to permit limited-equity cooperatives that own housing constructed or converted before Feb. 12, 1990, to be eligible for the low-income rental property tax exemption (LRPTE). Council later adopted a resolution updating the standards and guidelines for processing LRPTE applications. Council then voted to adopt the resolution approving a 20-year LRPTE for the Lucy Apartments; the motion passed 8-0.

Several speakers and the Western Regional Council of Carpenters asked the council to attach labor standards to the project, including prevailing wage, apprenticeship utilization and local-hire provisions. "Some safeguards that you can put into place for this 20-year tax exemption are community benefits like local hire and apprenticeship utilization," said Eric Morgan, a representative for the Western States Carpenters Union. City staff and the city attorney noted statutory limits and timelines: staff told council the project is three stories and that Oregon state law provides a prevailing-wage exemption for affordable housing projects under four stories; staff also noted statutory timelines for acting on LRPTE applications and that the applicant has materials toward financing closing.

Councilors said they appreciate the labor concerns and asked staff to provide additional information. Several councilors voted to approve the exemption while reserving the right to revisit or reconsider the decision at a subsequent meeting if new, material information emerges. The council also approved consent calendar items including two annexations that had been postponed until after public comment.