Eugene’s current economic climate (i.e. low average wages, high construction costs) make redevelopment very challenging for most development types. Student housing and medical offices are the only two types that make financial sense as redevelopment projects. Based on detailed analysis, however, other kinds of mixed use or housing are very unlikely to pencil out. Most of the new redevelopment projects we see downtown, for example, are enabled by public-private partnerships and wouldn’t be possible otherwise. The same is true in the South Willamette Area, where conditions do not support mixed use, multi-story redevelopment. For this reason, the City Council is proposing to extend the Multi-Unit Tax Exemption (MUPTE) to the South Willamette Area. This will help close the “financial feasibility gap” for a few projects over the years and help the community avoid expanding the Urban Growth Boundary. The proposed, revamped MUPTE program will also help ensure higher-quality projects and good design. It is important to note that the revised MUPTE program will not be available for student housing and medical office projects. Also, the MUPTE program will not be “turned on” for the South Willamette district until the new code is adopted and in place to help ensure that the investment supports projects that better meet the community’s expectations. For more information on the MUPTE program please visit the MUPTE project web page.