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character of new or redeveloped properties. <br />The focused use of these tools materially impacts <br />the location and quality of development, and the <br />image of downtown Eugene as a place to do <br />business and to live. <br />Financial Tools <br />The targeted use of economic development tools is <br />a key part of the City's commitment to a vital <br />downtown. Market conditions often result in <br />higher costs for downtown development, due <br />to a variety' of financial constraints and barriers <br />such as assembling smaller parcels for larger <br />projects, higher land costs, vertical and mixed-use <br />construction costs and parking needs. However, <br />development in the core area of the city places less <br />impact on infrastructure and transportation systems, <br />which is ultimately less expensive and more sustain- <br />able over the long run. Yet the viability of each <br />individual development project is primarily driven <br />by project cost and risk. Therefore, when the cost <br />and complications of development downtown is <br />greater; development will inevitably occur outside <br />of the downtown area. <br />The City will strategically use collaborative and <br />financial tools to counter these market conditions <br />and influence the location, character and density <br />of development. Collaborative tools focus on <br />technical development assistance such as reviewing <br />projects or working to promote a more favorable <br />lending environment. These tools often have <br />timing and cost implications, such as fast tracking <br />permits or providing fee assistance. <br />• Urban Renewal Districts <br />Tax increment revenue generated through the two <br />urban renewal districts in downtown is the primary <br />financial tool for downtown projects. This revenue <br />can be used for a wide range of development <br />purposes within each district, from land acquisition <br />to renovation and facade improvements. The City's <br />Urban Renewal District Plans include the require- <br />ments of the districts and list examples of <br />downtown-related projects. <br />• Commercial Revitalization Loans <br />Urban renewal revenue can be used to make loans <br />for building rehabilitation, renovation, facade <br />improvements, historic preservation, tenant <br />improvements, accessibility and general property <br />improvements within the Downtown Urban Renewal <br />District. <br />• Multi-Unit Property Tax Exemption <br />(MUPTE) <br />The program offers aten-year property tax <br />exemption for the construction of new multi-unit <br />rental or ownership housing within an eligible <br />boundary. <br />• Vertical Housing Development Zone <br />The program offers aten-year tax exemption on <br />mixed-use projects within an eligible boundary that <br />include housing above ground floor commercial. <br />Financial tools include revenue for development <br />projects or incentives from a variety of sources, as <br />listed below. The Downtown Financial Tools map <br />shown on page 46 indicates the location of those <br />tools that are geographically based, including the <br />urban renewal districts. <br />Typically, the purpose of economic tools is to close <br />the gap between the development costs in the <br />downtown core and development costs outside of <br />downtown. Incentives can be used to encourage <br />retail activity and improve the architectural <br />• New Markets Tax Credits <br />This is a federal program that uses funds <br />generated from tax credit sales for economic <br />development. <br />• Community Development Block Grant <br />(CDBG) <br />Funds received from the federal government each <br />year can be used for activities such as job creation, <br />elimination of slums and blight, and accessibility <br />improvements. <br />12 EUGENE DOWNTOWN PLAN APRIL 2004 <br />