Agenda & Minutes

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Mayor & Council (View All)

City Council Study Session Agenda & Minutes

Minutes
Thursday, January 18, 2018

AGENDA
January 18, 2018
12 noon
City Hall, Medford Room
411 W. 8th Street, Medford, Oregon

1.     Housing Advisory Committee


MINUTES

January 18, 2018
12 noon
City Hall, Medford Room
411 W. 8th Street, Medford, Oregon

The Medford City Council Study Session was called to order at 12:00 p.m. in the Medford Room of the Medford City Hall on the above date with the following members and staff present:
 
Mayor Gary Wheeler; Councilmembers Clay Bearnson, Kay Brooks (arrived at 12:30 p.m.), Tim D’Alessandro, Dick Gordon, Tim Jackle, Kevin Stine, Kim Wallan, Michael Zarosinski
 
City Manager Brian Sjothun; City Attorney Lori Cooper; City Recorder Karen Spoonts; Planning Director Matt Brinkley
 
Housing Advisory Committee (HAC)
City Manager Brian Sjothun explained the HAC was created to determine various housing strategies. Planning Director Matt Brinkley stated this will come back to Council on February 15, 2018 and noted he was seeking Council direction on the following:
  1. Initiation of a construction excise tax (adopted after UGB goes into effect)
  2. Initiation of a SDC deferral program
  3. Establish a permanent Housing Advisory Committee
  4. Development of regulatory reforms
  5. Development of economic incentives
 
Mr. Brinkley noted:
  • The area median household income is $44,130
  • The median home sale price $272,000
  • Comprehensive plan requires 753 dwelling units per year; about 500 units built in 2017
  • Should have around 10,000 dwelling units for households up to 120% of area median income
  • Three main constraints for housing:regulatory, development and financial
  • Construction Excise Tax (CET)
    • Provides reliable funding source
    • Should benefit smaller builders and developers
    • Purpose is to build more housing
    • Establish a permanent Housing Advisory Committee
    • Annual call for projects/RFP similar to the City of Bend
    • Could have automatic “sunset” after a period of time
  • SDC deferral and/or exemption
    • Fees the same for commercial/residential; 1/3 of 1%
 
Council comment:
  • The 1/3 of 1% generates about $500,000 year in Bend
  • It was unknown whether the CET be considered as an SDC for deferral purposes; the state statute needs to be reviewed
    • If it can be deferred, Council would like it included with the CET
  • To promote building and allow adequate funding, City should defer as much as possible to occupancy
  • Public hearing set for February 15, 2018
  • HAC recommended providing discounts for low-income, multi-family buildings; hopefully is affordable at market rate
    • Affordable housing means the housing is subsidized
    • Workforce housing means affordable for households up to 120% of AMI
  • Reduce by half, or possibly eliminate fees, if the project provided necessary housing
  • Eliminate compatibility to neighborhood, but meet design standards; properties should look like the neighborhood and provide pride of ownership
  • Affordable housing is typically 30% of the gross income, including mortgage and utilities
  • Agreed to a CET of 1/3 of 1%
  • Not all Councilmembers agreed with a required automatic sunset, but preferred periodic review
  • CET would benefit the building of residential units, not necessarily help businesses
  • If the Council would like a permanent HAC is approved, Council will be back to provide direction
  • Committee did not believe tax would cause issues for multi-family construction
  • Enterprise Zone eliminates property taxes for three years and is not applicable for residences
  • Majority of Council agreed to no cap on the CET
  • May or may not exempt non-profits from CET
  • Council discussed whether the Housing and Community Development Commission should be combined with Housing Advisory Committee, assume the duties, or perhaps be a permanent subcommittee
  • Direct staff to develop a definition of “affordable housing”, bring back discussion of the SDC referral program, develop regulatory reforms, develop economic incentives
 
The meeting adjourned at 1:22 p.m.
 
 
 
 
Karen M. Spoonts, MMC
City Recorder

 

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