• Multiple Unit Property Tax Exemption (MUPTE). This is a state -enabled program <br />designed to be an incentive of redevelopment of residential properties in city <br />centers and along transit corridors. It reduces property taxes on new multi -family <br />development in specific locations and with specific characteristics defined by the <br />City for up to 10 years. Development feasibility testing for River Road indicates <br />that MUPTE would have a noticeable impact on the feasibility of multi -family <br />development. The City currently offers this program for multi -family development in <br />the downtown, subject to a few additional requirements. This program could be <br />applied to specific target areas (e.g. adjacent to the new Santa Clara transit <br />station) or throughout the corridor, given the area's transit proximity. <br />• Urban Renewal or Tax Increment Financing (TIF). Oregon law allows local <br />jurisdictions to establish tax increment financing (TIF) districts, also known as Urban <br />Renewal districts, where taxable value over a set `frozen base' goes to that TIF <br />district. The revenue above the frozen base from all overlapping taxing district is <br />directed to the TIF district. Eugene has two TIF districts: the Downtown and <br />Riverfront Urban Renewal Districts. The TIF revenue has funded a broad range of <br />development projects and has capitalized loan programs to support <br />redevelopment. <br />The City could establish a new Urban Renewal district in the River Road corridor <br />area. A TIF district would create a dedicated funding source for targeted <br />programs, including: <br />o Grants or low-interest loans targeted at storefront improvements for existing <br />commercial buildings or other uses; <br />o Funding Tenant Improvement (TI) allowances for targeted businesses to move <br />into existing commercial space; <br />o Land acquisition, so the City could direct redevelopment activity; and <br />o Public infrastructure improvements. <br />TIF is a flexible tool that can be used to fund a wide variety of projects. However, <br />establishing a new TIF district requires rigorous analysis and extensive stakeholder <br />outreach. It may require a multi-year planning process. In addition, it takes years <br />before the incremental revenue—that revenue over the frozen base—is substantial <br />enough to fund any meaningful investment. <br />The City could also establish tools that are not currently available. <br />• Vertical Housing Tax Credit. This is a partial tax abatement for multi -story mixed- <br />use development. The value of the exemption is less than the value associated with <br />the MUPTE program (described above). It is an alternative to MUPTE. <br />• Scaled SDCs. The City has scaled its Transportation SDC so that it is lower in the <br />downtown and along transportation corridors, to further incentivize development in <br />those areas. The City could scale the other SDCs imposed on new development in <br />targeted areas, in alignment with Neighborhood Plan goals. <br />RIVER ROAD CORRIDOR STUDY <br />126 <br />