More student housing may be coming to Eugene.
Capstone Collegial Properties,@@http://www.capstonecompanies.com/divisions/capstone_properties_llc@@ in partnership with Master Capital Management,@@http://mastercapitalmanagement.com/@@ has proposed a new plan to redevelop PeaceHealth’s empty Eugene clinic building into 300 new apartments to house 1,200 students downtown. The project would be located on approximately five acres at West 13th Avenue and Olive Street.
Eugene developer Steve Master@@http://mastercapitalmanagement.com/@@ said he thinks the new apartment complex would help revitalize the downtown area by bringing more students into the area.  The complex would have staff who live on-site, according to Master.
He hopes to break ground around June 2012, but would not comment on a completion date for the project. Capstone Collegial Properties has built similar housing structures across the country, most recently in Tempe, Ariz. for Arizona State University.
The developers are also pursuing a 10-year property tax exemption on the building, which will require city council approval.
“The developers have indicated that the property cannot be feasibly redeveloped if they cannot receive a tax reduction,”@@bullshit. the oregonian ran a story on this that disproved it@@ Eugene Senior Planner Nan Laurence@@http://www.linkedin.com/pub/nan-laurence/13/729/617@@ said. Although this may appear bad for the city in the short run, Laurence says supporting the economy of the city is the most important thing.
“As this land is now vacant, the land can just sit there and it won’t develop any taxes,” she said. “It will be a significant amount of tax revenue for the city in the long run if the development goes in.”@@so why give them breaks? she just killed her rationale@@
The city council is set to vote on this tax issue April 9. The council has awarded tax breaks before, and they vote on it on a case-by-case basis, according to Laurence.
Laurence thinks the project will affect the downtown area in many positive ways. She said the project will work toward the triple power of sustainability:@@?@@ maintaining a sustainable environment, helping the economy and equity issues.
“To have the students live downtown supports the downtown economically,” she said. “Students wield major spending power so it would have an impact on downtown.”@@dher…so why should we not keep the taxes that come in instead of giving the developer the break?@@
The project would be built mostly on parking lots and have more than 300 apartments in three connected five-story buildings in addition to two parking garages.
“From an environmental point of view, the development would be built where there is already infrastructure in place,” she said. “It’s not a greenfield site where you’re taking land from other places. It’s redeveloping. It would also be in a location that would encourage people to use their bikes or walk.”
The proposal has not yet faced major opposition from the community.
“We’re working with them to hear what their needs are and to help meet their needs,” Master said. “I don’t believe we’re in opposition to the community. We’re working on putting something together that works for everyone.”
The Downtown Neighborhood Association has expressed some concern about the possibility of this new development. Some residents, too, were apprehensive about the effect of having  1,200 students living downtown. David Mandelblatt,@@http://www.eugenedna.org/@@ the association’s chair, intends to follow the progress of this development closely.
“Yes, there are people who are concerned — no surprise there,” Mandelblatt said. “But I personally will not base the support or lack of support on the fact that students are the intended occupants. In my opinion, that’s a red herring that doesn’t address the core issues of benefits and problems with the project.”@@such as?@@
There are many aspects of the project still up in the air, but Laurence said the community needs more student housing eventually, and this is a good option.
“We know that we have to accommodate growth in this community in a way that sustains Eugene as a very livable place,” she said.