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potential sites owned by the City, other government agencies and by private single or multiple owners. He <br />noted that sites could be added to the map. <br /> <br /> <br />Status of Other Agency Sites and Existing City Hall <br /> <br />Facility Project Manager Mike Penwell provided an update on the status and availability of properties <br />owned by other governmental agencies: <br /> <br />? <br /> Existing federal building – General Services Administration (GSA) confirmed the building would be <br />used for federal agencies for the next 10 to 15 years, although a small area would be available to <br />rent, possibly to Municipal Court <br />? <br /> Butterfly parking lot – owned by Lane County and any transfer of ownership to the City would <br />involve extensive negotiations; the County would entertain proposals, but the lot generated revenue <br />and that would be a consideration <br /> <br />Mayor Piercy pointed out that recommendations from the Park Blocks master planning effort were to return <br />the lot to use as a park rather than a building site. Mr. Hacker said that those uses were not mutually <br />exclusive and a civic building would a good companion to the Park Blocks. <br /> <br />Mr. Penwell continued his review of properties: <br /> <br />? <br /> Former Lane County Elections site – possible compensation to County for market value or exchange <br />of property <br />?th <br /> Lane County parking garage on 6 Avenue – heavily used garage with tunnel access to the Court- <br />house and Public Service Building, would require significant compensation <br />? <br /> State Office Building – State is interested in surplusing the building <br />? <br /> EWEB site – recent decision by EWEB to move operations to west Eugene makes most of site <br />available <br /> <br />Mr. Penwell said there were three approaches to determining the value of the existing City Hall: 1) value in <br />use – the value of the building as City Hall; 2) principle substitution – purchase by another organization; <br />and 3) value exchange – analyzing the market value for rehabilitation and reuse. He said the third approach <br />was the primary approach used to estimate market value and a quick analysis indicated the existing building <br />might actually decrease the value of the land. He said other factors that affected income potential were the <br />high costs associated with rehabilitating and operating the building, relatively limited leasable space and <br />space that was low- to mid-quality. He said a more formal appraisal that included the full range of <br />approaches to value would be done to confirm that the building value was low with little likelihood the <br />market would rehabilitate it. He commented that the proposal from the Downtown Initiative for the Visual <br />Arts (DIVA) to use the building for a visual arts center might be feasible it the building was donated or sold <br />for $1. <br /> <br />Mr. Papé asked if the City would continue to have any liability with respect to building defects if it was <br />donated or sold. Mr. Penwell said that sale would transfer liability to the new owner. He added that there <br />was a small amount of asbestos in the building and drilling beneath the building had not found any <br />contaminants; the environmental risk of the building was low. <br /> <br /> <br /> <br />MINUTES—Eugene City Council August 9, 2006 Page 3 <br /> Work Shop <br /> <br /> <br />