Is it true that the City is giving $10 million to this development team?

No. The City is contributing public resources to the project, as described in Question 5. What is the City of Eugene contributing to this project? If City Council chooses to move forward with this proposal, the City would transfer the land to the development team at no cost and would apply $1.1 million to cover pre-development costs.

There is some confusion about the value of the property that would be transferred to the development team. The City had the property appraised in 2019 by Duncan and Brown, a real-estate appraisal firm located in Eugene. They estimated the value of the property at $680,000. That appraisal stated that the structure added negative value to the property—that is, the property would be worth more if it were a vacant lot.

The Lane County Office of Assessment and Taxation shows the property had an estimated real market value in 2020 of about $6.9 million. It estimates the land at about $0.9 million and the structure at about $6.0 million.  The Office of Assessment and Taxation reported that they last analyzed the building in 1994. Since that time, the property’s estimated real market value has been pegged to average commercial values across the county. Commercial property values have increased since 1994, and the Office of Assessment and Taxation simply applies the average growth rate to all commercial properties to this property. The property has been in public ownership since 1979 and is therefore tax exempt. The Office of Assessment and Taxation has not made it a priority to re-assess the value of a building that does not generate tax revenue. Because the building has not been re-assessed, the County’s real market value does not take into account the current state of the unmaintained building, the asbestos in the building, and the amount of investment needed to re-use the existing building. The Duncan and Brown appraised value is an accurate assessment of the building’s property value.

Show All Answers

1. What’s happening at 1059 Willamette Street?
2. What is the proposed project?
3. What is Affordable Housing?
4. Is this project considered Affordable Housing?
5. What is the City of Eugene contributing to this project?
6. Why isn’t this project for households with incomes less than 60% Area Median Income?
7. What are the tools available to support lower-income Affordable Housing?
8. Is the City doing anything else to create Affordable Housing?
9. What are the proposed rents and how were they calculated?
10. How do we know only households at or below 80% of Area Median Income will be able to rent the income-qualified units?
11. How long will these 80% AMI rents be maintained?
12. Who is the team that proposed the Montgomery?
13. Why is Council only considering one proposal for this site?
14. Why is the City pursuing a mixed-income housing project?
15. Is it true that the City is giving $10 million to this development team?